W. Va. Code R. § 112-20-14

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 112-20-14 - Contributions

14.1. Any person may make a contribution to a Jumpstart Savings account after the account is opened, subject to applicable state and federal laws. Contributions shall be made only in cash.

14.2. Rollover Contributions.

14.2.1. Any portion of a SMART529 distribution that is deposited into a Jumpstart Savings account within 30 days of receipt of the SMART529 account distribution, is a rollover contribution to the Jumpstart Savings account and is eligible for the state tax decreasing modification according to W. Va. Code § 11-21-12m(d) to the extent the distribution amount is not allowable as a deduction when arriving at the account owner's federal adjusted gross income. Nothing in this rule governs or addresses the treatment of any such rollover contribution for federal tax purposes and the SMART529 distribution may be subject to federal tax liability and penalties.

14.2.2. Any portion of a Jumpstart Savings account distribution that is deposited into a West Virginia ABLE account within 30 days of receipt of the Jumpstart Savings account distribution, is a rollover contribution and is eligible for the state tax decreasing modification according to W. Va. Code § 11-21-12m(d) to the extent the distribution amount is not allowable as a deduction when arriving at the account owner's federal adjusted gross income. Nothing in this rule governs or addresses the treatment of any such rollover contribution for federal tax purposes and the Jumpstart distribution may be subject to federal tax liability and penalties.

14.2.3. When making a rollover contribution, the account owner shall complete the forms and make such disclosures of financial information as required by the board.

14.2.4. Account owners should consult with their own federal tax advisor concerning any potential rollover of a SMART529 or West Virginia ABLE account into a Jumpstart Savings account prior to any such rollover.

14.3. Matching Contributions. -

14.3.1. When making a matching contribution to qualify for the tax credit provided in W. Va. Code § 11-21-25 or §11-24-10 a, the contributing employer and the owner of the account receiving the matching contribution shall submit all information required by the board on a form provided by the board.

14.3.2. An employer may not claim the credit for a matching contribution provided in section 14.3. to an Account of which he or she is the Account Owner or Designated Beneficiary.

14.3.3. Employers should consult with their own federal tax advisor and/or legal counsel concerning any potential tax implications or other legal implications of making a matching contribution to a Jumpstart Savings account.

14.4. Any forms necessary to make a contribution, a rollover contribution, or an employer matching contribution will be made available on the website: https://wvjumpstart.com.

W. Va. Code R. § 112-20-14