Skip to main content

Looking to Learn More? Sign up for our Investing Insights newsletter. Subscribe

Thanks for Signing Up!

Be sure to check your inbox for the Investing Insights newsletter to get the latest news and insights from Thrivent Mutual Funds.

Well that's unexpected - your subscription request was not submitted. Please try again.

Great news - you're on the list!

Looks like you're already on our mailing list. Be sure to check your inbox for the Investing Insights newsletter to get the latest news and insights from Thrivent Mutual Funds.

IRAs That Help You Retire with Confidence

Simplified Employee Pension Plan (SEP) IRA

A Simplified Employee Pension Plan (SEP) IRA is an individual retirement account associated with your employer's SEP Plan. Although you set up the SEP IRA account, your employer makes all the contributions on your behalf. Other than the contributions, SEP IRAs are a lot like a traditional IRA, putting the account owner in charge of their retirement funds. Learn about the features, rules, and limits of a SEP IRA.

SEP IRAs May Be a Great Choice for People Who:

  • Have been notified by their employer they are eligible for a SEP Plan
  • Are a small business owner who has established a SEP Plan 

The Thrivent Approach

Though your employer is making the contributions on your behalf, you can control how they are allocated. Whether your goal is accumulation or distribution, Thrivent Mutual Funds offers simple solutions to diversify investments based on your risk tolerance. Choose from all-in-one investments or build your own allocations according to your specific objectives.

SEP IRA Highlights

Contribution Limits

  • 2015 and 2016: Employer can contribute up to 25% of your compensation or $53,000 (whichever is less)

Thrivent Minimum Investment

  • $1,000 per Thrivent mutual fund 
  • All contributions must be made through the employer, account minimums can be waived depending on amount of employer contribution

 

Distributions

  • Required at age 70½

Withdrawals

  • Penalty-free after age 59½ and taxed as current income
  • 10% penalty may apply before age 59½ unless an exception applies

Fees

  • Annual IRA 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 or have a recurring purchase plan.
  • Annual small account fee of $12 may apply for those accounts not maintaining minimum balance requirements. See the Prospectus for more information.
  • SEP IRA closeout fee of $20
  • Other fees may apply for certain services and are redeemed directly from your account. Examples include overnight delivery or wire fees.

Additional Documents

SEP Plan Participant Information

Your employer is required to provide information to all eligible employees to help you understand your SEP plan. 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)