Anybody knows what happens to your 401k Brokerage Positions after you leave Intel (voluntarily or not)? Like how long do you have to rollover to a new company before they transfer the balance into an IRA, or does Fidelity let you keep the account, etc.
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I stayed with Fidelity, but wanted out of Intel 100%. So I took the Intel 401k and used a Rollover and Roth IRA (depends on what type of contributions you made over the years). Picked low cost index funds and was pleasantly surprised on dividend payouts and auto reinvesting them. Lots of investment choices in the open market rather than Intel limited.
You can give all your retirement money to Intel CFO to manage for you. He is a great chief financial guy to manage Intel $150 billions dollars to below $100 billions dollars the last couple years and still earning millions to do so. Very smart guy.
If you are grade 10 up and opted for SERPLUS with 10 year payout you are in serious jeopardy and can do nothing about it. If Intel declares bankruptcy all the money you put there to defer taxes is an unsecured liability. No new buyer is motivated to take care of retired and ex-employees with regard to serpplus
Roll it over so the company no longer has any say. If you leave it in the 401k the company can determine the investments available which may favor funds that hold their shares. Break all ties with the company. They threw you away.
I retired in November and started to roll over my IRA/401k to Schwab, but realized that there's at least one pretty good option in the Fidelity list. FWIW, The Fidelity Growth Company Commingled Pool Class S has returned averages 12.37% over the past year, 21.45% per year for last 3 years, 18.74% per year for last 5 years, and $18.32% per year for the last 10 years. It's had the same manager since 2013 the the expense ration is only 32 basis points (0.32%). I going to move about half my funds, but want to keep accesss to this fund at least until the current manager retires - YMMV.
Roll it over even if you leave it at fidelity. There are better investment options available outside the 401k.
Check with an advisor. You can keep the Intel 401K, but they have about a 1% higher fee than others, so look into rolling over if you can.
Talk to your Fidelity financial advisor what to do next in your particular situation. They will assign one advisor to your account and you can do planning with them.
It can be kept with Fidelity indefinitely, and although the Savings account has what I consider to be poor investment choices for anyone over 40 or so, you can use brokerage link.
The 401k is said to be immune from lawsuit-related seizure, and may offer other protections. There are some advantages to the Intel Stock fund with regards to taxation, so if you have a lot of that then look into that.
I took ERP last year, and chose to clear out the 401k, using rollover IRAs. Depending on the brokerage, the IRA can sometimes be wide open to security selection, including leveraged funds and CDs. I continue to be happiest with Fidelity and found that some of the other brokerages had security limitations.
It's a bit late, but maxing out your 401k contributions is a great way to offset the taxation from the severance package, which can push you into the highest tax bracket, thus eating up a lot of the package. ERP was the only package that ever made sense to me. ISP and VSP are only good if you have another job lined up, or ready to move to get a job.
Another thing is the HSA (if you have a high deductible plan), which you can contribute to even if not employed, and it offsets any income. It can be cashed out at 65 for any purpose, so really is similar to a Roth. You can use it to do investments and it is the only account which lowers FICA taxes.
Fidelity lets you keep the account and it’s your choice when to rollover. Or not.
Nothing will change here until you want or direct it to.