I was recently made aware of a really good deal. A deal that is made for those of you who commute to work on your bike.
Under Section 122 of the Internal Revenue Service Code, employees who work for a company that offers some form of a commuter account can contribute $20 a month for biking expenses. There are other commuting expenses covered in these programs including mass-transit and parking, but the thing that hit me was this $20 a month for biking expenses. And these programs let employees put pretax dollars into accounts to cover these expenses!
Wow! This is a real deal.
If you are a bike commuter, and your employer doesn’t offer some form of a commuter account, perhaps you should ask about it. Administration fees are the only cost to your employer, and these may be more than offset by the savings, since funds are taken o8ut before the FICA tax is applied.