Jumpstart Savings Act

New Jumpstart accounts for careers

If enacted, this bill would create state-run Jumpstart savings accounts that would be tax-advantaged for career, trade, and apprenticeship costs. Accounts would be tax-exempt under the subtitle but programs would remain subject to the unrelated business income tax. The bill would let you roll over money from a 529 plan into a Jumpstart account. Rollovers would be allowed for the same beneficiary or for a family member. Allowed expenses would include costs to complete a DOL-registered apprenticeship. They would also include tuition, fees, books, supplies, and equipment for associate or certification programs at community or technical colleges. Also included are required certification or licensure fees, and tools or equipment used in the trade. Business startup costs would be covered only if they are paid exclusively to start and run the business. The bill would require program officers to report contributions and distributions to the Secretary and to account beneficiaries under rules the Secretary prescribes. Failing to file those reports would be subject to penalties under current section 6693. The rules would apply to taxable years beginning after December 31, 2025.