The Jumpstart Savings Program is a state-administered career savings account designed specifically for current and future members of the skilled workforce in West Virginia.
Account owners may be able to save for tools, supplies, equipment, licensing and certification, and other business costs while enjoying special state tax advantages.
Whether you’re looking to grow your business, or just getting ready to go out on your own, the Jumpstart Savings Program serves West Virginia trade professionals throughout every stage of their careers.
Who may be able to benefit from a Jumpstart Savings Account?
- Community & technical college students and graduates
- Registered apprenticeship program participants and journeymen
- Advanced Career Education (ACE) students and graduates
- High School Career Technical Education (CTE) students and graduates
- Individuals who’ve obtained a license, certification, or degree through a “License 35” vocational training program (such as a CDL training program or independent cosmetology school)
- Individuals who have completed any other apprenticeship or educational program consistent with the purposes of the program, as approved by the Board. The current list of other qualifying professions approved by the Board can be found HERE.
Why Open a Jumpstart Savings Account?
Ease and Flexibility
Jumpstart Savings is a value-added account for all savers—big, small, and in-between. With no monthly maintenance fees, transaction limits, or minimum account balance, trade professionals may maintain access to funds using United Bank’s online and mobile banking features.
State Tax Advantages
Any West Virginia taxpayer, including the Account Owner himself of herself, may claim a West Virginia personal income tax deduction of up to $25,000 per tax year for the money he or she puts into a Jumpstart Savings Account. Account contributions over the $25,000 per tax year limit may be carried forward and deducted over the next five tax years.
Additionally, money taken out a of a Jumpstart Savings Account used for qualified expenses may be West Virginia income “tax-free” for the Account Owner in one of two ways. Learn more.
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. Learn more.
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.