As the Plan Administrator for the employer, can I decide whether to allow terminated employees to continue using the transit and/or parking balances after the date of termination?

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As the Plan Administrator for the employer, can I decide whether to allow terminated employees to continue using the transit and/or parking balances after the date of termination?

01/10/2019

1028

Commuter Reimbursement Account (CRA)

Simple Answer:

No. Terminated employees cannot use remaining transit/parking balances.

Detailed Answer:

No. According to Treas. Reg. Sec. 1.132-9, Q/A-5:

May qualified transportation fringes be provided to individuals who are not employees?

A-5. An employer may provide qualified transportation fringes only to individuals who are currently employees of the employer at the time the qualified transportation fringe is provided.

http://www.gpo.gov/fdsys/pkg/CFR-2012-title26-vol2/pdf/CFR-2012-title26-vol2-sec1-132-9.pdf

Frequently Asked Questions

As the Plan Administrator for the employer, can I decide whether to allow terminated employees to continue using the transit and/or parking balances after the date of termination? 01/10/2019 1028

Related Questions

What happens to my plan after termination?

Should transportation benefits be included on the employee’s W-2?

How do I get reimbursed for CRA expenses?

How does a CRA work for participants?

What is the difference between a TRN and TRP account?

As the Plan Administrator for the employer, can I decide whether to allow terminated employees to continue using the transit and/or parking balances after the date of termination?

01/10/2019

1028