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, trade school, 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.