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Beacon Roofing Supply Employees: Smarter Ways to Manage Taxes on Appreciated Stock

Healthcare Provider Update: Beacon Roofing Supply provides health insurance benefits to its employees through wellness-focused programs. The companys MotivateMe Wellness Program includes annual health assessments, health coaching, and online health management tools. Employees who participate may receive reduced insurance rates. Beacon emphasizes safety and well-being through workplace training and health resources 5. Healthcare costs in the United States are projected to continue rising through 2026, with insurers proposing significant premium increases for Affordable Care Act (ACA) plans. A recent analysis found that ACA insurers are seeking a median premium increase of 15% for 2026, marking the largest hike since 2018. This surge is attributed to factors such as the anticipated expiration of enhanced premium tax credits, rising medical costsincluding expensive medications and increased hospital staysand a shift in the risk pool towards higher-cost enrollees. Without the renewal of enhanced subsidies, out-of-pocket premiums for ACA marketplace enrollees could increase by more than 75% on average. Click here to learn more

'Beacon Roofing Supply employees with concentrated stock positions may benefit from thoughtful tax planning that allows for tax deferral while balancing liquidity, compliance, and long-term compounding,' Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Beacon Roofing Supply employees who hold highly-appreciated stock may want to consider tax-efficient strategies that help mitigate their liabilities while aligning with their overall retirement goals,' Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How taxes can affect investment returns, particularly on concentrated stock positions.
Exchange funds and options-based strategies as methods for tax deferral and diversification.
Alternative planning techniques outside ETFs, including charitable trusts and gifting strategies.

By Carlos Hernandez, Wealth Enhancement advisor

When it comes to driving portfolio returns, many investors aim to keep management fees low by investing in low-cost index funds and exchange-traded funds (ETFs). While fees matter, however, the real culprit for lower-than-anticipated performance is taxes. ¹

Wealth Enhancement advisor Carlos Hernandez explains: 'By losing less to taxes each year, investors have access to more capital that can continue to compound over time. This makes tax deferral an important part of an effective financial plan.' Beacon Roofing Supply employees looking for long-term growth strategies could benefit by understanding how to better manage their investment tax burdens.

Trade Money

One area where taxes can take a toll is on the sale of company stock or other concentrated investment positions. Beacon Roofing Supply professionals looking to diversify could face significant capital gains taxes on an outright sale. One way to diversify without triggering immediate capital gains is through exchange funds. By contributing their highy-appreciated stock to a pooled fund, investors can trade their concentrated holdings for shares in a diverse basket of securities. This method can be used by Beacon Roofing Supply employees who want to diversify while postponing taxable events.

Although this method allows for tax deferral, it also requires investors to hold the exchange fund for a period of time, typically seven years. ² This could create a challenge for investors who require liquidity. Additionally, these funds are often exclusively accessible to wealthy, accredited investors—something Beacon Roofing Supply executives should carefully evaluate.

Funds Based on Options

Another way to mitigate taxes on the sale of highly-appreciated stock is by using options contracts. The idea is to hedge risk with put options while covering the cost of those puts by selling call options—a strategy called 'collaring'. From there, the strategy reverses, with investors selling put options and using the proceeds to buy call option on an equity or bond index. ³ If managed effectively, this helps to diversify a concentrated portfolio while still maintaining liquidity.

Given the complexity of this strategy, meticulous planning is necessary. It's generally recommended that investors work with an experienced financial advisor before pursuing this approach.

Things to Be Aware of

Although these strategies can be beneficial for Beacon Roofing Supply employees who hold highly-appreciated stock, caution is recommended. There are costs associated with these approaches, and potential liquidity risks. Additionally, the IRS may eventually contest such arrangements because their tax status has not been thoroughly examined—something Beacon Roofing Supply retirees should keep top of mind.

'Tax drag reduction strategies can be effective, but they must be assessed through the lens of risk, liquidity, cost, and compliance,' warns Carlos Hernandez. What is appealing in theory must hold up to inspection in the real world.

Alternative Strategies

Although they show promise, investors with highly-appreciated stock or those looking to postpone gains have other alternatives besides exchange funds or options. Other tactics could include:

- Prepaid variable forwards (subject to IRS regulations, contracts to sell at predetermined terms in the future).
- Charitable remainder trusts (CRTs), which allow investors to donate appreciated stock to a charitable trust and receive a stream of regular income in return.
- Donor-advised funds (DAFs), which provide investors with a tax deduction for the fair market value of the appreciated stock they donate.
- Other gifting techniques, such as direct donations to charity or family.
Each has its own set of guidelines, advantages, and disadvantages. To limit unnecessary taxes or violating the constructive sale regulations, careful planning is necessary for Beacon Roofing Supply professionals managing complex portfolios.

The Bottom Line

Although the movement to mitigate the tax burden on investments is not new, the instruments are changing. Both exchange funds and options-based structures offer investors a way to manage tax liabilities, especially for Beacon Roofing Supply employees who hold highly-appreciated stock.

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In the end, taxes are unavoidable. However, with the correct set of instruments, they can be controlled and postponed. 'The real value comes from aligning tax strategy with investment strategy,' summarizes Carlos Hernandez.

Sources:

1. BlackRock Advisor Center. ' Investing for After-Tax Returns ,' 2025.

2. Kiplinger. ' Four Clever and Tax-Efficient Ways to Ditch Concentrated Stock Holdings ,' by Robert Waskiewicz. Sep. 11, 2025.

3. Financial Planning Association. ' Tax-Efficient Ways to Diversify Concentrated Stock Positions ,' by Peter Lazaroff. Oct. 2024.

What type of retirement savings plan does Beacon Roofing Supply offer to its employees?

Beacon Roofing Supply offers a 401(k) retirement savings plan to help employees save for their future.

Does Beacon Roofing Supply match employee contributions to the 401(k) plan?

Yes, Beacon Roofing Supply provides a matching contribution to employee 401(k) contributions, subject to specific terms and conditions.

How can employees at Beacon Roofing Supply enroll in the 401(k) plan?

Employees can enroll in the 401(k) plan by completing the enrollment process through the company’s designated benefits portal.

What is the eligibility requirement for employees to participate in Beacon Roofing Supply's 401(k) plan?

Employees must meet specific eligibility criteria, such as age and length of service, to participate in the 401(k) plan at Beacon Roofing Supply.

What investment options are available in the Beacon Roofing Supply 401(k) plan?

The 401(k) plan at Beacon Roofing Supply offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Can employees at Beacon Roofing Supply take loans against their 401(k) savings?

Yes, employees may have the option to take loans against their 401(k) savings at Beacon Roofing Supply, subject to the plan's rules.

How often can employees at Beacon Roofing Supply change their 401(k) contribution percentage?

Employees can typically change their 401(k) contribution percentage at any time, following the guidelines set by Beacon Roofing Supply.

What happens to an employee's 401(k) account if they leave Beacon Roofing Supply?

If an employee leaves Beacon Roofing Supply, they can choose to roll over their 401(k) balance to another retirement account or leave it in the plan, depending on the plan's provisions.

Is there a vesting schedule for the employer match in Beacon Roofing Supply's 401(k) plan?

Yes, Beacon Roofing Supply has a vesting schedule for employer matching contributions, which means employees must work for a certain period to fully own those contributions.

How can employees at Beacon Roofing Supply access their 401(k) account information?

Employees can access their 401(k) account information through the online benefits portal provided by Beacon Roofing Supply.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Beacon Roofing Supply announced a restructuring plan in 2024, involving significant layoffs across various departments. The company is also revising its benefits and pension plans to align with its cost-reduction strategies.

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For more information you can reach the plan administrator for Beacon Roofing Supply at 505 Huntmar Park Dr Herndon, VA 20170; or by calling them at +1 571-323-3939.