I was let go last year. My severance just terminated but I found a job outside PepsiCo immediately. Should I leave my 401k with Pepsi? Move it to my new company? Too young to cash it out.
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As soon as my severance package is up I am taking my money out and having my own financial person invest the money for me. The sooner I can cut my ties to PepsiCo the better, after 26 years I never realized how toxic the company had became. My job going to GBS was such a blessing, I have found a much better job with higher pay, better work environment and a better 401K plan to boot.
I have been through that and rolled mine into an IRA staying with Fidelity. It was easy and there is a little bit of yearly savings in fees. $26.00 If you roll it to traditional there are no tax consequences until you pull money out. If you go Roth there are immediate tax consequences but tax savings down the road. I went with traditional because the year of my severance my earnings were 2.25 times a years typical pay.
I also left 2 years ago, but decided to keep my 401k with Pepsi. As adviced by others, there is no drawback or benefit of not rolling over, unless your new employer offers better options in which case you may want to leverage it. Personally, I like Pepsi's 401k because you can invest your contributions into stocks through brokerage link account which to my knowledge is very rare and a great benefit to have. You could do the same by rolling over into IRA but IRA does not protect your money as much as company offered 401k account do. Hope that helps!
Since they or you can’t add to it I would roll it into a Roth IRA. Then start fresh with the new company. If it’s a lot of money I would just roll into the new company.
I was let go a couple of years ago and to be honest I trusted PepsiCo as far as I could throw them. I rolled it over and I never looked back. I don’t regret my decision at all. Good luck with your new position and the remainder of your career!
Entirely up to you, but me personally, I generally transfer it to the plan with the new company unless there's some compelling reason not to do so. (ie... this plan's website offers a convenience the other one doesn't, or the new plan has lots of fees, etc...)