The West Virginia Jumpstart Savings Program is a state-administered program to help West Virginians save money to help cover the costs of pursuing a career in skilled trades and vocations.
Who can benefit from a Jumpstart Savings Account?
Graduates from a community or technical college, apprenticeship program, or ACE career center may be able to use Jumpstart Savings Account funds to offset qualified expenses involved in their chosen vocation or trade. A qualified expense describes a Jumpstart Savings Account’s Designated Beneficiary’s costs for (1) tools, supplies, and equipment; (2) licensing and certification fees; and (3) business start-up costs used exclusively in a qualifying occupation, profession, or trade.
Potential Jumpstart Savings Account Benefits
- Contribution and Distribution Benefits – Account Owners may claim certain state tax benefits for contributions to Jumpstart Savings Accounts and distributions from Accounts, if those distributions are used for the Designated Beneficiary’s qualified expenses.
- Employer Matching Credit – Employers may qualify for a non-refundable state tax credit of up to $5,000 per taxable year, per employee, against either personal income tax or corporate net income tax, for direct contributions into a Jumpstart Savings Account for which their employee is named the Designated Beneficiary.
- Ignite Incentive – The State Treasurer will deposit $100 into a Jumpstart Savings Account in accordance with Program rules and state law, if the Designated Beneficiary is a West Virginia resident and is under the age of 18 or has enrolled in a qualified apprenticeship or training program within 180 days of opening the Jumpstart Savings Account.
- Rollover to ABLE State Tax Benefit - A modification reducing West Virginia taxable income may be permitted, in an amount equal to the portion of a distribution from a Jumpstart Savings Account, distributed to the taxpayer in the taxable year, that the taxpayer deposits into a West Virginia ABLE Account within 30 days of receiving said distribution.
- SMART529 Rollover State Tax Benefit - A modification reducing West Virginia taxable income may permitted, in an amount equal to the portion of a distribution from a West Virginia SMART529 account, distributed to the taxpayer in the taxable year, that the taxpayer deposits into a Jumpstart Savings Account within 30 days of receiving the distribution. Any nonqualified distribution from a SMART529 account may be subject to federal taxes and federal tax penalties.