By Josh Church, 2026 Candidate for Lieutenant Governor
Saving for your children’s education can feel overwhelming. College costs are high, the future is uncertain, and many families are already balancing mortgages, groceries, and everything else that comes with raising kids.
But sometimes the first step is much easier than people think.
I recently set up Alaska 529 college savings plans for my three children. What surprised me most was how simple the process was. While I was applying for the Permanent Fund Dividend, I simply selected the option to start the process. Weeks later I received an email to complete the setup.
In about thirty minutes I had all three accounts open, our bank account linked, recurring contributions set up in addition to the PFD deposits, and the investment allocations selected. What felt like it might be a complicated financial task turned out to be straightforward and accessible.
The Alaska 529 plan exists to help families save for education in a tax advantaged way. Investments grow tax deferred, and when the money is used for qualified education expenses the withdrawals are generally tax free at the federal level. Those expenses can include tuition, books, fees, and in many cases housing and meal plans.
The flexibility of these plans has also expanded in recent years. Funds can be used not only at universities but also at trade schools and vocational programs across the country. Education today does not always follow one path, and savings tools should reflect that reality.
For my children, I chose an all-equity investment allocation. They are many years away from needing the funds, so the priority today is long term growth. As they get closer to college age, I will go in and change the allocation to something more conservative to help protect the savings that have built up over time.
For families who would rather not adjust the investments themselves, many 529 plans offer target date portfolios that automatically become more conservative as a child gets closer to college age. That allows the account to adjust over time without the parent needing to make regular changes.
Another major improvement to 529 plans came with recent federal legislation. Under the new rules, unused 529 funds can now be rolled into a Roth IRA for the child, subject to certain limits. That means the money does not go to waste if a child receives scholarships, chooses a different path, or simply does not use all of the funds for education.
The current lifetime rollover limit is $35,000. If a young adult rolled that amount into a Roth IRA around age 23 and simply left it invested until age 65 without adding another dollar, it could grow to nearly $2 million in a tax-free retirement account assuming long term market returns similar to historical averages.
In other words, the money could help launch a career through education or help launch a lifetime of retirement savings.
In many ways this type of long-term planning reflects a lesson Alaskans already understand well. Decades ago, Alaska set aside a portion of its oil revenue to create the Alaska Permanent Fund. What began as saving a small portion of resource wealth has grown into one of the largest sovereign wealth funds in the world and is now a primary source of the state’s unrestricted revenue.
Families can apply the same principle on a smaller scale. By setting aside a small amount consistently over time, parents can help provide for their children’s education and potentially give them a head start on retirement savings.
Like any investment account, a 529 plan does not guarantee returns and investments can fluctuate. But time is powerful. Small, consistent contributions made over many years can grow into something meaningful.
The biggest obstacle for many families is simply getting started.
My experience was a reminder that planning for the future does not always require complicated strategies or large upfront commitments. Sometimes it begins with simply checking a box while applying for the Permanent Fund Dividend and taking a few minutes later to finish the setup.
For families across Alaska who are thinking about how to prepare for their children’s future, the Alaska 529 plan is a practical place to begin.
Josh Church is a Fairbanks resident, a financial adviser rep, and a candidate for Lieutenant Governor, running alongside Candidate for Governor Dave Bronson.
This op-ed was voluntarily submitted by Joshua Church and not solicited by Must Read Alaska. All candidates running for elected office are welcome and encouraged to submit articles for publication. Must Read Alaska unequivocally supports the election of a conservative candidate to the Office of Governor but does not endorse a particular candidate.
