Funds trapped in Commuter Benefit Plan
Due to working from home for COVID and changing jobs, I have over 600 trapped in a Commuter Benefit Plan. 400 transportation/200 Parking. I received a notice that the money has been moved to a credit card that will incur a $5.75/month adminstrative fee. Is there any way for me to get this money out even if I have to pay taxes on it?
Terry Says
I’m assuming this is a company benefit — and they realize that you can’t use the money for its intended purpose. If it’s a pre-tax plan, then yes you would owe taxes if you take the money out now. You need to contact your HR department and ask whether you can simply use the money for other purposes. They will probably send you a 1099, or add it to your taxable wages for 2020 if you do that. But not knowing the specifics, I think it wise to ask the HR department these specific questions.
