What are pros and cons ? Thanks
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If you're 55 or older the year you leave employment, you can withdraw from your 401K from that company only without penalty, just the normal taxes. If you roll it into an IRA you can't withdraw without penalty until you are 59-1/2.
So for those of us between 55 and 59-1/2 we have an opportunity to access our Intel 401K earlier than the normal age requirement. In my case I am leaving it in the Intel 401K to retain this access with really no downside.
If you are not going to reach your 55th birthday by this calendar year, or want to withdraw from a previous employer's 401K, this penalty free withdrawal option is not allowed
I called Fidelity and they put me in contact with their local office. I met (could be over the phone, if no local office) with a financial adviser for free who worked with Intel employees, so he was very familiar with Intel retirement plans. They even ran couple of analysis how long my money will last if I retire today. Each person's situation is different. I suggest you talk to a Fidelity financial adviser to see what works best for you. Other than the number listed on their site, 1-800-557-1900 is the direct number specifically if you have questions about Intel's pension plan.
The advantage of rolling over into an IRA is that you will have potentially many more investment options. But you should check the load (management fees) on the funds you want to invest in - they might be higher or lower than the fees on the Intel funds, which can make a huge difference over the long run. Me, I'll probably roll over into a Vanguard IRA - super low cost, especially their index funds. But Fidelity does provide lots of services (advice, etc).
If you are an active/semi active investor and would like to have more choices (such as stocks, more funds, I think IRA can even allow you to invest in real estate etc), I suggest rolling your account to an IRA. The process is simple. I think with IRA you have more control over your money, any expenses and fees.
If you are a passive investor and like the options Intel 401k provides, you can leave it there.
It is better to move it to ira as you have more options. The reason to keep in Intel 401k is if you are happy with the choices as the mgmt fees will be lower (eg s&p500 fund)
What I did with my wife's when she retired was simply leave it in those accounts. Since they are 401K taking out will incur tax. Fidelity is large enough and it is a brokerage like account so you are free to buy and sell securities, bonds, or park in money market or what ever that Fidelity offers and ride the market up, or in this case down ( at least you ain't going to the bottom for sure like Intel, LOL )
I will likely not move it, Fidelity doesn't have the best fees.. go shopping if the fees bother you and do a 401k-401k transfer.
ERP can leave it - I'm pulling my intel portion out the same with rolling my pension $$