Allows one-time distributions from transportation fringe benefit accounts during a specified period.
The COVID–19 Commuter Benefits Distribution Act permits one-time payments from transportation fringe benefit accounts, excluding them from gross income. These accounts must have been set aside by employers under a compensation reduction agreement. The payments can be made during a six-month period starting from the enactment date of the Act and must not exceed the highest balance of the account from March 13, 2020, to December 31, 2023. Unused amounts can be carried forward to the next month, subject to certain conditions.
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