7 Tips For Maximizing Your Jumpstart Savings Account

West Virginia's Jumpstart Savings Program gives skilled professionals a unique opportunity to save for their future while offering state tax advantages. This program provides significant benefits, and by following these seven tips, you can maximize the value of your Jumpstart Savings Account.

1. Leverage Tax-Deductible Contributions

The Jumpstart Savings Program allows annual contributions of up to $25,000 to be deducted from your West Virginia state income taxes. This translates to direct savings on your tax bill. Additionally, contributions exceeding the $25,000 limit can be carried forward and deducted over the following five tax years. Take advantage of this opportunity to maximize your tax savings.

2. Make Regular Contributions

Building a healthy savings habit takes consistency. Even if the initial amount appears modest,  aim for regular contributions. Setting a specific amount you can contribute every month, regardless of size, helps your savings grow steadily over time.

3. Automate Your Savings

To ensure consistent contributions and accelerate your progress toward achieving your financial goals, consider setting up automatic deposits into your Jumpstart Savings Account. United Bank offers a user-friendly platform for automating deposits, essentially placing your savings on autopilot. This eliminates the risk of forgetting to contribute.

4. Maximize Returns Through Qualified Expenses

Contributions aren't the only way to grow your Jumpstart Savings Account. You unlock additional state tax benefits when you use your saved funds for qualified business expenses.  Think of career expenses like basic and specialty tools, professional licenses or even continuing education courses — all potential tax-savers! Remember, keep good records of these qualified expenses for future reference.

5. Plan For The Long Haul

The Jumpstart Savings Program is designed to support you throughout your skilled career journey. Whether you're just starting out as a plumber, electrician or another skilled professional, or aiming to grow your existing business by purchasing new equipment or expanding your services, the program can help you achieve your financial goals. Utilize the program throughout your career to build a secure and prosperous future.

6. Consolidate Your Savings

Moving funds to different savings programs doesn't have to be a hassle. You can easily rollover funds from other state savings programs, such as WVABLE accounts and SMART529 college savings plans, to your Jumpstart Savings Account. This ensures you retain control over your finances and simplifies the process of managing your savings across diverse programs.

7. Take Advantage Of The Ignite Incentive

If you're a West Virginia resident under 18 years old with an interest in a skilled profession, or if you enroll in a qualified apprenticeship or training program within 180 days of opening your Jumpstart Savings Account, you may be eligible to receive a $100 bonus deposited into your account through the Ignite Incentive. This welcome boost, courtesy of the West Virginia State Treasurer's office, serves as a springboard for your savings journey.

Ready to Jumpstart Your Savings?

Take the eligibility quiz today to see if you qualify, and open an account to watch your savings grow alongside your career.