What happens to my commuter balance if I leave my job?

When you leave your employer, your commuter benefit account ends. Unspent pretax commuter dollars cannot be refunded to you in cash. The IRS does not allow it, and the money does not transfer to a new employer's plan.

Plans usually allow a short run-out window to spend balances on qualifying commute costs you already incurred.

The federal rule

IRC §132(f), the federal commuter benefit rule, prohibits cashing out unused commuter benefit balances. Unlike an FSA, the IRS defines no grace period or carryover to next year. Most plans still allow a short window after you leave to use remaining funds on qualifying commute costs you already incurred.

Common plan rules

Most plans give a 30 to 90 day run-out window after termination. During that window you can submit qualifying costs incurred before your termination date.

What Alice does

When payroll processes your termination, Alice stops new contributions. You get a short window to spend what is left on qualifying purchases, per your employer's plan rules. Alice Card is typically deactivated at termination or at the end of the run-out window, whichever is later under the plan.

Practical advice

Estimate your remaining commute costs for the rest of the month before you change jobs. Then right-size your last election so you don't leave a balance behind. A transit pass you already loaded is usually good through its valid period.

Employers can read more about final paycheck rules for commuter balances when an employee leaves.

At your next job

If your new employer offers Alice (or any §132(f) plan), you start fresh with a new election. Limits are per-employer-per-year, not personal.

Need help?

Text or call (888) 431-4355 or email support@thisisalice.com.

Specific benefits, election rules, and run-out periods depend on your employer's plan design. Check with your HR team or plan administrator for details.

Alice does not provide tax, legal, or financial advice. Consult your own tax preparer, lawyer, or financial advisor for guidance specific to your situation.

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