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Individual Retirement Accounts

An Individual Retirement Account (IRA) is a great way to start saving for your retirement.  An IRA is a personal savings plan that provides income tax advantages* to individuals saving money for future use.  KFS offers Traditional and Roth IRAs with various terms to meet your savings goals.

  • No setup or service charges
  • FDIC insured
  • Contributions may be tax deductible*
  • Penalty may apply for early withdrawal

Traditional IRAs

A Traditional IRA is a tax-advantaged arrangement that allows earnings and deductible contributions to grow tax-deferred.  That means you don't have to pay any income taxes on the earnings and deductible contributions of your IRA until you start taking withdrawals.

Contributions may be deductible from your gross income on your federal income tax return for the year in which the contributions are made.

Generally, earnings and gains in your IRA are not taxed until distributed.  In some cases, amounts are not taxed at all if distributed according to IRA rules.

Send a secure message or Call a KFS Customer Service Representative at 873-5151 or toll free 1-888-249-0606 for more information. 

 

Roth IRAs

A Roth IRA allows you to accumulate earnings on a tax-deferred basis and to withdraw earnings tax-free for qualified distributions.  Roth IRA contributions are not deductible from your gross income.  However, since you have already paid taxes on the money you've contributed, contribution dollars can be withdrawn at any time without tax consequences.

Earnings can be withdrawn tax and penalty free if the IRA has been in existence for at least 5 years and the distribution meets certain requirements*.

  • You are at least 59 ½ years old
  • After your death
  • You have become disabled
  • To purchase or construct your first home ($10,000 maximum)

Send a secure message or Call a KFS Customer Service Representative at 873-5151 or toll free 1-888-249-0606 for more information.  

View Rates and Terms

 

View Rates and Terms


Combined Traditional and Roth IRA Contribution Limits for 2016 and 2017*

If you are under 50 years of age at the end of the year: The maximum contribution that you can make to a traditional or Roth IRA is the smaller of $5,500 or the amount of your taxable compensation for the year.

If you are 50 years of age or older before the end of the year: The maximum contribution that can be made to a traditional or Roth IRA is the smaller of $6,500 or the amount of your taxable compensation for the year.

In either case, the maximum contribution can be split between a traditional and a Roth IRA but cannot exceed the combined limit ($5,500 for under 50 or $6,500 for 50 or older).  The maximum contribution to a Roth IRA and the maximum deductible contribution to a traditional IRA may be reduced depending upon your modified adjusted gross income and whether you are covered by a retirement plan.

*Visit www.irs.gov to learn more about Individual Retirement Arrangements (IRAs), for additional information. Consult your tax advisor to determine what type of IRA and what contribution amount is right for you.