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  • Transportation Benefit FAQ

    Who is eligible for the Transportation Benefit?

    Only employees are eligible to participate in the Section 132 Transportation Benefit. Therefore, two percent or more owners in an S Corporation, sole proprietors, partners in a partnership, LLCs, and LLPs are not eligible to participate in the plan. Your PacificSource Administrators representative will work with you to resolve any eligibility questions.

    Is this different than our flexible spending account plan?

    Yes, this is a separate tax code. One significant difference is that funds left in the transportation plan at the end of the year may be rolled into the next year. Upon termination, however, funds remaining in the account will be forfeited back to the employer.

    Can employees drop the plan, and then re-enroll later?

    Employees may discontinue the plan at any time; however, they may not re-enroll until the next plan year unless they meet one of the following qualifying events: change in worksite; change in hours; change in residence; or other changes in a commute allowed by IRS Code.

    Can employees carry over unused funds from one month to the next?

    Only if the amount requested does not exceed the federal limits per month.

    How soon must employees submit claims?

    They may submit requests for reimbursement at any time during the year, and have until 90 days after the plan year to make requests. Otherwise funds will be rolled into the next plan year.

    What if employees want to change their deduction amount?

    While we allow employees to make changes at any time, you have the option of limiting the number of changes to simplify your administration. To make a change, the employee should complete a change form and submit it to your payroll department.

    Have another question about our Transportation Benefit? Please contact us.