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.
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.
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.
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.
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.
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.
A tax-advantaged investment tool for your retirement savings.
Whether you’re already participating in employer-sponsored retirement plans and want additional investment options, or not saving and want to start, our Roth Individual Retirement Account (IRA) allows you to decide when and how much you save. With our Roth IRA, you’ll receive funds tax-free in retirement or pass them on (tax-free) to beneficiaries.
About IRAs
Who is eligible for the Roth IRA?
If you are an employee or former employee of an eligible employer, you are eligible to participate. Spouses of an eligible employee are also able to open an IRA.
Why the Roth IRA?
Advantages:
As an individual retirement program, you don’t have to enroll through an employer, so if you ever change jobs your money stays with you.
Make contributions on your own schedule, or roll over funds from another account.
Designate beneficiaries to ensure your money lives on (tax-free).
Competitive, guaranteed base rate of 3-6% with no downside market risk.
Value increases with Good Experience Credits, additional interest earnings awarded when excess reserves exist.
Good for employees who:
Wish for funds to be taxed at a current, potentially lower, rate and withdrawn tax-free in retirement.
Would like to access funds earlier than retirement if necessary.
Expect to be in the same or higher tax bracket in retirement.
Don’t have income that currently exceeds Roth IRA income limits.
Have available funds to roll over into a Roth IRA.
Like the Traditional IRA, the Roth IRA is based on after-tax contributions, allows rollovers, can be used to designate beneficiaries, has a 3-6% base interest rate, and is eligible for Good Experience Credits.
Unlike the Traditional IRA, the Roth IRA has income limits, is distributed tax-free, and doesn't require you to receive distributions within your lifetime (good for estate planning).
is the current base interest rate for the Roth IRA
How it Works
Eligible individuals can grow and withdraw their Roth IRA funds tax-free. And, because you don’t have to take distributions during your (or your spouse’s) lifetime, you can take it out, leave it in, or pass it on without beneficiaries having to pay taxes.
To participate: Pension Fund will need a completed enrollment form with the amount you wish to contribute. If you are a current member with access to the Member Portal, you can enroll securely online by logging into your portal and submitting your enrollment application online. You may also download our enrollment form and mail, email or fax a copy to Pension Fund.
In addition to regular contributions, the Roth IRA welcomes rollovers from eligible third-party accounts. Those eligible can request to make a rollover contribution from retirement plans, including:
Traditional IRA or Roth IRA*,
Pre-tax or Roth 403(b) account*,
Pre-tax or Roth 401(k) account*,
Pre-tax or Roth 457(b) account- governmental only, *
Pre-tax 401(a) account.
*A rollover from a pre-tax account to a Roth IRA is a "conversion" that is a taxable event. Please consult your tax advisor. Any portion that would be taxable if distributed to the participant must be included in income. A Roth IRA cannot be rolled into a Traditional IRA.
This product offers a competitive, guaranteed base interest rate of 3-6%, reducing your downside risk. Each account also qualifies for Good Experience Credits (additional interest earnings) when designated by Pension Fund’s Board of Directors.
These credits allow members to benefit directly from the upside of stronger markets (when underlying investments have performed well + minimum reserve requirements have been met). In combination with the Roth IRA’s base interest rate, Good Experience Credits may help you reach your retirement income goals faster.
*Base rate listed is the average of the quarterly base rates for the year. Good Experience Credits listed in the year it was received in accounts. Annualized return includes compounding. Data above represents historical data and may not be indicative of future performance.
Because Roth IRA participants can choose beneficiaries to receive the funds—and you’re not required to take distributions within your lifetime—a Roth IRA may be used as an estate planning tool to leave an inheritance. By choosing beneficiaries, it is possible to save an inheritance for children or other heirs, above and beyond retirement needs within IRS guidelines for maximum contributions.
Each participant (or their heirs) will ultimately receive the balance in the account. You aren't required to take any distributions from a Roth IRA during your lifetime, and your beneficiaries will not pay tax on distributions made from the IRA after your death.
“The Roth IRA is a great tool to use for retirement as a young church professional. With this savings program, I can begin saving early and allow my account to grow over time without having to worry about paying taxes when I retire.”
Pension Fund member
“With the Roth IRA, I can begin saving early and allow my account to grow without having to worry about paying taxes when I retire.”
New minister
“With the Roth IRA, I’ll be able to add the beneficiaries of my choice and they’ll not have to pay taxes on the funds when they receive them.”
Mid-career professional
“The Roth IRA allows me to continue to contribute…even while I continue to serve as a university professor past traditional retirement age.”
University professor
FAQs
Good Experience Credits are additional interest earnings. Each year, the Pension Fund Board of Directors reviews reserves required for current and future benefits, as well as reserves needed for any potential market declines. When reserves exist above what is required, the Board of Directors may declare Good Experience Credits for all IRA participants. Over time, these extra earnings can make a significant difference when saving for retirement.
Contributions are made with after-tax dollars, so they’re tax-free when distributed at retirement (or earlier in some scenarios).
No. However, a Roth IRA might be beneficial for someone relatively new in their career because contributions are taxed up-front (tax rates are lower when income is lower, and the Roth IRA does have income limits for contributions).
Pension Fund welcomes rollovers from eligible third-party accounts, including:
Traditional IRA or Roth IRA*,
Pre-tax or Roth 403(b) account*,
Pre-tax or Roth 401(k) account*,
Pre-tax or Roth 457(b) account- governmental only, *
Pre-tax 401(a) account.
*A rollover from a pre-tax account to a Roth IRA is a "conversion" that is a taxable event. Please consult your tax advisor. Any portion that would be taxable if distributed to the participant must be included in income. A Roth IRA cannot be rolled into a Traditional IRA.
If you are an employee or former employee of an eligible employer, you are eligible to participate. Spouses of an eligible employee are also able to open an IRA.
*Not available to residents of Canada or Puerto Rico.
