MF6535 R6-20Page 2 of 5
SEP IRA and SARSEP IRA - I acknowledge this excess contribution was the result of an employer excess contribution
(SEP IRA) or an excess employee salary deferral contribution (SARSEP IRA). Based on IRS regulations, the excess
contribution has been re-designated as a traditional IRA contribution and I elect to remove the amount as a traditional IRA.
Calendar year contribution was received by Thrivent Financial
Traditional IRA excess removals (includes re-designated SEP IRA and SARSEP IRA contributions)
Answer both the questions below. If either of the questions are not answered, Thrivent Financial will treat the excess
amount as a taxable event. Specifics on taxable compensation and maximum contributions can be found in IRS
Yes No 1. Did the contribution exceed the maximum contribution amount?
Yes No 2. Did the contribution exceed your taxable compensation for the tax year?
Taxation for Traditional IRA
· If the answer to question 1 is yes, the excess amount must be included in gross income. If you are under age 59 1/2,
any taxable excess amount may be subject to a 10% premature distribution penalty (see IRS Form 5329 for more
· If question 1 is no and 2 is yes, then the excess is not included in gross income and is not taxable. Thrivent Financial will
assume that the contribution was not deducted, or if deducted, that you amended your return within the time period(s) as
stated below. Therefore, Thrivent Financial will treat the excess amount over the taxable compensation as not taxable.
- If you did not take a deduction for the excess contribution amount, the excess amount over taxable compensation
would not be taxable; or
- If you took a deduction for the excess contribution, the excess amount over taxable compensation would be taxable
unless you file an amended return within three years after the return is filed, or within two years from the time the
tax was paid, whichever is less.
· If question 1 is no and 2 is also no, then this is not a true excess and cannot be removed as an excess.
· SARSEPs: The excess is taxable in the year of deferral and the year distributed. The earnings are taxable in the year
Roth IRA excess removals
Answer all the questions below. Specifics on taxable compensation, maximum contributions and Modified Adjusted Gross
Income (MAGI) can be found in IRS Publication 590.
1. Did the contribution exceed the maximum contribution amount?
2. Did the contribution exceed your taxable compensation for the tax year?
3. If the answer to question 2 is no, was your MAGI below the level to be eligible to contribute (full or
partial) to the Roth IRA?
Taxation for Roth IRA
· If the answer to question 1 is yes for a Roth IRA, excess is a return of cost basis therefore is not taxable.
· If question 1 is no and 2 is yes, then excess is not included in gross income and is not taxable.
· If question 1 is no and 2 is no, then:
- if question 3 is also no, the excess can be removed but since it is a return of cost basis, it is not taxable.
- if question 3 is yes, it is not a true excess and cannot be removed as an excess.
Section 3 - Distribution Option Desired
If no selection is made below for excess and earnings (where applicable), the excess amount and/or earnings will be
refunded to the IRA owner by check.
Send excess amount by:
Check Direct Deposit (complete bank info below) Apply to fund/account
Distribute excess to this fund/account number(s) Tax year
If new fund/account number(s), a new application is required. If no tax year is listed, the earnings will be applied to the