Individual Retirement Accounts

Will you have enough money for a secure, enjoyable retirement? Move powerfully toward that goal with an IRA from KFS!


For most folks, Social Security alone will not assure a financially-secure retirement. That’s why we invite you to open your own Individual Retirement Account (IRA) at Kennebec Federal Savings. Grow your nest egg grow as you enjoy great income-tax advantages!*

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

Choose from these 2 personal wealth-building IRA options:

Traditional IRAs

A traditional IRA allows you to earmark part of your income and other deductible contributions so they can grow in a way that is tax-deferred. Thanks to your IRA, you pay NO income taxes on those earnings and deductible contributions until you start taking withdrawals. (That could be years or even decades—and, in some cases, amounts are not taxed at ALL, if distributed according to IRA rules.)

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

Roth IRAs

A Roth IRA allows you to grow your personal wealth by accumulating earnings on a tax-deferred basis. It also offers you the option of withdrawing earnings tax-free for qualified distributions. Roth IRA contributions are not deductible from your gross income for tax purposes. However—since you’ve already paid taxes on the money you've contributed—your Roth contribution dollars can be withdrawn at any time without being taxed.

Also—earnings can be withdrawn tax- and penalty-free if the IRA has been in existence for at least 5 years and the distribution meets certain requirements: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)

*Visit and search for Individual Retirement Arrangements (IRAs). Consult your financial and/or tax advisor to determine what type of IRA and what contribution amount is right for you.


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