to remove an Iteration in Planner, go to the Timeline of the Team (when you are viewing the Iteration in the Team Backlog, you can use the "Timeline" link). In the Timeline, you have a Plan Item for this Iteration. By clicking the Project link in this Plan Item, the Plan Item sidebar becomes available with information about the Plan Item you are viewing. To delete the Plan Item, use the "Delete from Timeline" in the Cogwheel dropdown.
Cloud version : the dropdown is visible on the timeline directly. No side bar needed. You should center the team's timeline view on the day the iteration is ending, and then you'll see some kind of arrow on the block representing the iteration on the timeline, you can click on that arrow to show a "delete/edit" combobox.
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