The Transportation Spending Accounts
Under the JPMorgan Chase Transportation Spending Accounts, you pay for eligible transit and/or parking expenses related to commuting to and from work at JPMorgan Chase through before-tax payroll deductions.
Unlike the Health Care and Dependent Care Spending Accounts, most participants choose options where your contributions are used to pay for your transportation expenses (such as purchasing passes and tickets that are mailed to you, and paying parking expenses) directly, without you having to file claims for reimbursement.
If your transportation needs vary, then instead of using your contributions to purchase passes/tickets and pay parking expenses in advance, you can use your contributions to purchase Commuter Cards that you can use to pay for transit expenses as needed. For parking expenses, you have a third option, called "Pay Me Back," where your contributions are held in an account and you file claims to be reimbursed for eligible parking expenses.
If you choose the automatic purchase/payment approach, and the cost for your commuter passes/tickets exceeds the monthly before-tax contribution limits, the additional costs will automatically be deducted through after-tax payroll deductions.
By law, the maximum monthly contribution you can make to the Transportation Spending Accounts must be reduced by the value of any other transit/parking reimbursement or benefit that you may receive from JPMorgan Chase. Otherwise, the excess amount will be taxable income.
In deciding on the amount to contribute to the Transportation Spending Accounts, you will need to consider the value of any monthly transit/parking reimbursement that you may receive from JPMorgan Chase. If, in any month, the reimbursement from a Transportation Spending Account and the value of those other transit/parking benefits exceeds the maximum monthly legal limit, then the excess will represent taxable income to you. You may wish to consult a personal tax advisor to determine how participating in the Transportation Spending Accounts may affect your personal tax situation. JPMorgan Chase cannot provide you with tax advice.