EMPLOYEE FAQ

What is RTD-IRA?
What are the benefits of RTD-IRA?
How much do employees and employers save?
Who can participate?
How does the RTD-IRA pre-tax payroll deduction work?
What is the maximum amount that can be deducted by my employer?
Does my company participate in the RTD-IRA program?
How do I get my company to enroll in the RTD-IRA program?
Can I use my payroll deduction for anything other than RTD transit passes?
Do I have to direct deposit my RTD-IRA savings in a bank account?
How do I purchase my monthly transit pass?
Do I have to purchase a transit pass every month in order to join the RTD-IRA program?

What is RTD-IRA?
RTD’s Individual Rider Account (RTD-IRA) is an employer-sponsored transit benefit program offered by the Regional Transportation District (RTD). It was developed to provide the business community with a valuable employee benefit that helps companies and employees save money on taxes, reduce traffic congestion, improve the environment and promote transit use.

What are the benefits of RTD-IRA?
Employees who sign up for the RTD-IRA can save up to $1,500 a year with the RTD-IRA pre-tax savings, transit pass discount and reduced commuting expenses. RTD-IRA also increases employee awareness of transit options. Transit users have noted reduced stress from not driving, increased job satisfaction, improved on-time arrival and enhanced productivity.

Employers that offer the RTD-IRA to their employees can save as much as $100 per participating employee per year on payroll taxes while providing a valuable employee benefit. Employers sensitive to tax savings, employee morale, improved recruitment and reduced turnover are ideal RTD-IRA participants. They find that the program enhances their benefits package without increasing overall compensation costs while demonstrating their concern for the environment.

How much do employees and employers save?
Employees and employers save income taxes and payroll taxes on the amount of money provided for transit. Up to $105 a month ($1,260 a year) can be used for transit costs tax-free.

Employees who sign up for the RTD-IRA can save up to $1,500 a year: up to 30% on their pre-tax savings, an additional 10% on their RTD-IRA monthly transit pass, and $660 or more per year on reduced commuting expenses such as gasoline, auto maintenance and parking fees.* Employers that offer the RTD-IRA to their employees can save as much as $100 per participating employee per year on payroll taxes.

Who can participate?
All types of employers, from restaurants and hotels to small offices and large businesses with multiple locations, can participate in the RTD-IRA program. However, the employer must first enroll in the RTD-IRA program before employees can sign up for the RTD-IRA.

How does the RTD-IRA pre-tax payroll deduction work?
The amount that you spend on your transit pass, up to $105 a month, can be deducted from your paycheck before taxes. The money deducted is used to purchase your monthly RTD transit pass. Your yearly taxable income is reduced by the value of RTD transit passes that you purchase, up to $105 a month or $1,260 a year.

What is the maximum amount that can be deducted by my employer?
$105 per month, not to exceed $1,260 per year (subject to change based on IRS statutes).

Does my company participate in the RTD-IRA program?
Your employer must sign up for the RTD-IRA program. Contact your human resources representative to find out whether your company participates.

How do I get my company to enroll in the RTD-IRA program?
You can refer your human resources representative or company decision-maker to this web site. If they have any questions, they can contact an RTD sales representative at 303.299.2122 or via email at Contact Us.

Can I use my payroll deduction for anything other than transit passes?
No. Only the cost of transit passes is allowed under this program.

Do I have to direct deposit my RTD-IRA savings in a bank account?
Yes, you must direct deposit your pre-tax RTD-IRA savings (a minimum of $25 a month) in a qualified savings account with a recognized savings institution. This can be a new Wells Fargo® Goal Savings account, another savings account, an IRA, 401(k), or any other qualified savings account with a recognized savings institution.

How do I purchase my monthly transit pass?
You may purchase your monthly pass online at RTD-IRA.com or by faxing the enrollment form to 303.299.2600. You should place your order by the 5th of the month to receive your pass for the next month. Your pass will be mailed to your home address, via USPS First Class Mail no less than 5 workdays before the last day of the month.

Do I have to purchase a transit pass every month in order to join the RTD-IRA program?
No, you may purchase a transit pass as often as you wish during the year; there is no minimum purchase. However, the more often you purchase a transit pass and use transit to commute, the more you will save on pre-tax savings and commuting expenses. Once you enroll in the RTD-IRA program you will automatically receive your pass each month unless you go online and request a change or cancellation. Changes and cancellations must be made by the 5th of the month prior to receiving your pass.

If you have additional questions about the RTD-IRA program, please e-mail
info@RTD-IRA.com or call 303.299.2122.

*Based on AAA's 2004 average cost per mile of 14.1¢ for gasoline, auto maintenance and tires. Current average may be higher due to increased gasoline prices.