Can I open a transportation FSA for bike rental fees when the bike rental is used as transportation to and from my place of employment?

No. Qualified transportation reimbursements for bicycle expenses was eliminated in 2013. See IRS Letter Number 2013-0032. “Under section Internal Revenue Service Code 132(f)(1)(B), a qualified transportation fringe includes any transit pass. Under section 132(f)(5)(A), a “transit pass” is defined as any pass, token, fare card, voucher, or similar item (including an item exchangeable for fare media) that entitles a person to transportation on mass transit facilities (emphasis added) whether or not publicly owned. A bike share program is not a mass transit facility.”

Only work-related eligible expenses can be reimbursed under the commuter benefits plan. These expenses are defined by Internal Revenue Code Section 132.

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