Terminating a SARSEP
If you decide your SARSEP no longer suits your business, consult your financial institution partner to determine if another type of retirement plan might be a better match.
To terminate a SARSEP, notify the SARSEP financial institution that you will no longer be making contributions and that you want to terminate your contract or agreement. You must also notify your employees that you have discontinued the SARSEP.
You do not need to give any notice to the IRS that the SARSEP has been terminated.