Simplified Employee Pension Plan (SEP) IRA

A Simplified Employee Pension Plan (SEP) is a retirement plan established by a business owner, typically a small business owner. Once the employer has established the SEP plan, employees are then notified to get their own SEP IRA account setup so the employer can then make contributions on behalf of the employee. SEP IRAs are like a Traditional IRA and allow employees to control their retirement funds. Learn about the features, rules, and limits of a SEP IRA.

SEP IRA benefits:

Typically, higher annual contributions limits than Traditional and Roth IRAs.
Contributions are immediately 100% vested and grow tax-deferred until withdrawn.
Allows employees a wide array of investment options across all major asset classes and risk tolerances.
Less administration for a small business owner.

SEP IRA highlights

Contribution limits

2024: Employer can contribute the lesser of 25% of employee's compensation or $69,000.
2025: Employer can contribute the lesser of 25% of employee's compensation or $70,000.

Thrivent minimum investment

Thrivent mutual funds do not have a minimum investment requirement for Employer Sponsored Retirement Plans.

Distributions

Required to start taking distributions at age 73 or 75 if born in 1960 or later.
If a distribution is taken prior to age 59 ½, a 10% early distribution penalty may apply unless a distribution meets one of the IRS penalty exceptions.

Thrivent Mutual Funds fees

Annual Retirement custodial fee is $15 per shareholder (Traditional, SEP and Roth IRAs combined). Fee may be waived if you have $50,000 or more invested in Thrivent mutual funds.
Retirement account closeout fee of $15 may apply if all accounts in that retirement plan fee group are closed prior to the annual fee occurring.
Semiannual low balance fee of $10 may apply for those accounts not maintaining minimum balance requirements. See the Prospectus for more information.
Other fees may apply for certain services and are redeemed directly from your account. Examples include overnight delivery or wire fees.

SEP plan participant information

Your employer is required to provide information to all eligible employees to help you understand your SEP plan and the contributions your employer will make. You should look for:

SEP plan document or IRS Form 5305-SEP (with instructions).
A statement showing contributions made for the year (by Jan 31 of the year following the contribution or 30 days after the contribution is made, whichever is later).
A copy of any plan amendments and their effect (within 30 days of the effective date).