February 18, 2008
Terminating A SEP IRA
Terminating a SEP IRA is a procedure that you should be aware of. Although SEPs are established with the intention of continuing indefinitely, the time may come when a SEP no longer suits the purposes of your business. When that happens, consult with your financial institution to determine if which small business retirement plans solutions might be a better alternative. To terminate a SEP, notify the financial institution that you will not make a contribution for the next year and that you want to terminate the contract or agreement. Although not mandatory, it is a good idea to notify your employees that the plan will be discontinued. You do not need to give any notice to the IRS that the SEP has been terminated.
