Shares - Club Accounts - IRA Shares - Certificates and IRA Certificates

• Shares
  
• Club Accounts
  
• IRA Shares
  
• Certificates
  
• IRA Certificates
  

Katahdin Federal offers a variety of savings plans to suit your needs. At Katahdin Federal you will earn higher-than average dividends to help you reach your investment goals sooner.

• Member Share Account -- With a minimum deposit of $25.00, this primary membership account opens a world of membership opportunities to you. Earn competitive dividend rates while safeguarding your funds with a Life Savings Benefit Insurance of up to $2000.00. With a share account, you can achieve future investment goals by saving through payroll deduction and direct deposit. Eligible members can complete an online application.

• Club Accounts -- Holiday Savings Clubs, Vacation Clubs and Special Clubs are available to set aside funds for the holidays, vacations or special purposes such as taxes or home improvements. Saving is made simple through payroll deduction or direct deposit. The amount is automatically deducted from your paycheck and deposited into the account of your choice. For your convenience, Holiday club proceeds are automatically transferred in October to the share draft or share account of your choice.

• IRA Share accounts - Individual Retirement accounts are a great way to save for retirement while earning higher than average dividends. KFCU offers the traditional IRA, the Roth IRA and the Coverdell Education Savings Account.

• Starting in 2002, if you are under 70 ½ and have income from compensation (or are filing jointly with a spouse who earns compensation), you may contribute up to $3,000 per year or 100% of compensation, whichever is less, to a traditional or Roth IRA. Traditional IRAs allow for certain contributions to be tax deductible (consult your tax advisor).

  For people over the age of 50, the new rules allow for "catch-up" contributions. You can exceed the regular contribution limit by $500 each year until 2006. At that time the "catch-up" amount increases to $1,000 per year above and beyond the regular contribution limit. Beginning in 2005, the annual contribution limit will increase to $4,000 and in 2008 it will jump to $5,000.

• The Roth IRA accepts nondeductible contributions and offers the following advantages:
  • Contributions may be withdrawn tax-free and penalty free at any time
  • Earnings may be withdrawn tax-free and penalty-free under a variety of qualifying conditions
  • There are no minimum distributions requirements
  • Contributions are allowed after age 70 ½ if you have earned compensation or income
  • Earnings must be under $95,000 on a single tax return and under $150,000 on a joint tax return in order to contribute the full $3,000 to a Roth IRA. Partial contributions can be made if earnings are under $110,000 for single filers and $160,000 for joint filers.

• Education IRAs, now known as Coverdell Education Savings account, are worth considering for college savings. The annual contribution limit has increased from $500 to $2000 per child. Also, the increased income limits for married couples filing jointly have made more people eligible to use this savings tool. As of tax year 2002, any married taxpayer filing jointly with income under $190,000 can put the maximum $2000 per year and reduced contributions can be made with income levels between $190,000 and $220,000. The contribution "phase out range" for single filers remains at $95,000 to $110,000.

  The new rule also allows for tax-free withdrawals for elementary and secondary school expenses-including home computer equipment.

• Share Certificate and IRA certificates can be established with a low minimum deposit of $500.00. Share Certificates provide higher dividends for funds invested for as little as 90 days to as long as 60 months (IRA Certificate terms range from 12 months to 60 months and can be established for the traditional, Roth and Educational IRA).

Membership Agreement and Disclosure
Share and Share Draft Rate Schedule/ Truth-In-Saving Disclosures
Certificate Rate Schedule/Truth-In-Savings Disclosures
Fee Schedule
Financial Calculator