Terminating a Payroll Deduction IRA


If the time comes when a Payroll Deduction IRA no longer suits the purposes of your business, consult with your financial institution to determine if another type of retirement plan (or, perhaps, no plan at all) might better suit your needs.

To terminate a Payroll Deduction IRA, notify your payroll organization that you will no longer be making this service available to your employees and that you want to terminate the contract or agreement with it. Although it is not a requirement, you should notify your employees that the Payroll Deduction IRA has been discontinued.

You do not need to give any notice to the IRS that the Payroll Deduction IRA has been terminated.