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Special Apportionment for 2024 Announced Read the Full Press Release

Pension Fund of the Christian Church

Employer-Sponsored Retirement Products

Overview

As a church plan, Pension Fund is able to offer flexible and worry-free retirement options for employers and their employees. Our team of Area Directors will meet with you to discuss your needs and help you get started.

Individual Savings & Retirement Products

Overview

Whether you’re just starting out or closer to retirement, choose from a variety of products to help you reach your retirement and savings goals.

Program Applicants

Ministerial Relief & Assistance

Our relief programs meet the evolving needs of new, active, and retired clergy and their families to ensure all ministers and lay workers can enjoy a strong, smart, secure retirement.

Supporters & Donors

Make An Impact with a Donation

Your gifts and financial support helps ministry workers in need bridge the unexpected from now until retirement (and beyond).

Resources

Overview

Discover planning and educational tools & resources to help you navigate your financial wellness journey.

For Members & Clergy

For Members

Guides, factsheets and resources to aid you on the Road to Financial Wellness.

For Clergy

Clergy-specific resources to support your call to ministry.

For Employers

For Employers

Hiring tip sheets, tax guides and more to help you manage your employees' benefits.

Your Money Line

Pension Fund has partnered with Pete the Planner® to provide members with access to financial guides who will help answer your tough financial questions & online tools such as calculators and eLearning courses.

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Events

Retirement Readiness Seminars

Ready to retire soon? Attend this seminar and get answers to common retirement questions to help you prepare for the next step.

The Gathering 2024

Register now to attend The Gathering. We will be in Washington D.C. Sept 3-5.

Employer-Sponsored Retirement Products

Overview

As a church plan, Pension Fund is able to offer flexible and worry-free retirement options for employers and their employees. Our team of Area Directors will meet with you to discuss your needs and help you get started.

Individual Savings & Retirement Products

Overview

Whether you’re just starting out or closer to retirement, choose from a variety of products to help you reach your retirement and savings goals.

Program Applicants

Ministerial Relief & Assistance

Our relief programs meet the evolving needs of new, active, and retired clergy and their families to ensure all ministers and lay workers can enjoy a strong, smart, secure retirement.

Supporters & Donors

Make An Impact with a Donation

Your gifts and financial support helps ministry workers in need bridge the unexpected from now until retirement (and beyond).

Resources

Overview

Discover planning and educational tools & resources to help you navigate your financial wellness journey.

Your Money Line

Pension Fund has partnered with Pete the Planner® to provide members with access to financial guides who will help answer your tough financial questions & online tools such as calculators and eLearning courses.

College Savings: How to Leverage a 529 Plan to Avoid Student Loan Debt

With the rising cost of tuition and the unpredictable nature of higher education expenses, many parents turn to 529 plans as a source of financial stability. While we know financing your child(ren)’s education is not always feasible, it’s important to look into your options to make the right choice for your family. Like any investment tool, 529 plans come with their own set of pros and cons. Let's dive into the nuances of these college savings accounts to help you make an informed decision.

Perks of a 529

One of the most enticing advantages of 529 plans is the potential for state tax benefits! While not every state offers income tax deductions or credits for contributions, over 30 states do provide some form of tax incentive. This means that by investing in your child's education through a 529 plan, you could be saving money on your state taxes, allowing your money to stretch even further.

Before we get too excited about saving on taxes, we must understand that there are going to be some restrictions on the funds to keep the money tax-free. While the funds can be used for a variety of qualified education expenses, including tuition, room and board, books, and even certain K-12 expenses, using the funds for anything outside of these categories may result in having to pay taxes and penalties.

Potential Concern(s):

One concern we frequently hear at Your Money Line is what happens to the funds if your child chooses not to attend some form of secondary education. Setting money aside only for it not to be used is a reasonable concern One advantage of 529 plans is the flexibility of who can benefit from the funds. Unlike some other savings options, such as custodial accounts, parents retain control over the account and can change beneficiaries if needed. This means that if the original beneficiary decides not to pursue higher education, the funds can be redirected to another family member without penalty – this would even include grandchildren

Now, let’s say there is still money left over after; what happens to it then? Luckily there has been a recent change to 529 plans that allow any remaining balances to be rolled into a Roth IRA for the beneficiary, allowing the money to still grow tax and penalty free.

The Bottom Line

Despite some of the limitations that exist with 529 accounts, the benefits of having a dedicated savings vehicle for education expenses, if possible, cannot be overstated. By earmarking funds specifically for education, you are creating a financial safety net that can alleviate the stress of covering tuition bills down the line. Plus, with the potential for tax-deferred growth and compounding interest, starting early and consistently contributing to a 529 plan has the potential to make a significant difference in your savings goals.

If you have questions on how to incorporate a 529 account into your financial plan, reach out to a member of the Your Money Line team for more information.

Gifts by generous donors to Ministerial Relief and Assistance (MRA) make programs like Your Money Line possible. Learn more about MRAhere.