Terminating a SEP
If you decide your SEP no longer suits your business, consult with your financial institution to determine if another type of retirement plan might be a better match.
To terminate a SEP, notify the SEP-IRA financial institution that you will no longer be contributing and that you want to terminate the contract or agreement. It is a good idea to notify your employees that you have discontinued the plan.
You do not need to give any notice to the IRS that you have terminated the SEP.