This bill allows employees to make one-time withdrawals from their employer-sponsored transportation benefits accounts without facing the usual tax penalties. Specifically, employees can withdraw money that accumulated in their commuter benefits accounts between March 13, 2020, and December 31, 2023, up to the highest balance the account held during that period. The withdrawal must occur within six months of the bill's enactment. Any money withdrawn will be taxed as regular income for that year, but employees can continue using their accounts normally for future transportation expenses. The legislation primarily benefits workers who set aside pre-tax income for transit passes, parking, and other commuting costs and accumulated unused balances during the pandemic period when many people worked remotely.
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