Tax day is now extended to May 17, 2021. Visit the Tax Resource Center to help you prepare.

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 contributions on your behalf. In addition to your employer’s contributions, you can contribute your traditional IRA contribution to your SEP IRA (by mail-in check only and the contribution cannot be pre-taxed salary deferred). For additional information on traditional IRA contributions, see the Traditional IRAs page. 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

2020: Employer can contribute lesser of 25% of pay or $57,000
2021: Emplyer can contribute less of 25% of pay or $58,000

Thrivent minimum investment

Thrivent Mutual Funds does not have a minimum investment requirement for Employer Sponsored Qualified Plans.

Distributions

Required to start taking distributions at age 72

Withdrawals

Penalty-free after age 59½ and subject to federal income tax
10% early distribution penalty may apply before age 59½ unless an exception applies

Thrivent Mutual Funds 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.
Semiannual low balance fee of $10 may apply for those accounts not maintaining minimum balance requirements. See the Prospectus for more information.
SEP IRA account closeout fee of $15
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)