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Frontier Communications Employees: Your Essential Guide to a Smooth 401(k) Rollover in Just Five Steps

You have several options for rolling over your employer-sponsored 401(k) retirement plan if you have quit working for Frontier Communications. Choosing where to roll over your account can potentially save you tens of thousands of dollars â or cost you the same amount if you choose incorrectly.

Rolling over a 401(k) with high-fee investments into an individual retirement account (IRA) with lower-cost investment options or into your current employer's 401(k) plan could save you a significant amount of money. According to the U.S. Department of Labor, a 1 percent increase in fees could result in a 28 percent decrease in your retirement account balance.

If you work for Frontier Communications and a rollover makes sense for you, here's how to transfer your old 401(k) funds to a new one.

How to transfer your 401(k)

Follow these five steps to get your 401(k) rollover underway:
Determine the type of account you desire.
Determine where you wish the funds to go.
Open an account and learn how to execute a rollover.
Commence the rollover procedure
Act quickly

What is a rollover of a 401(k)?

Frontier Communications employees should know that a 401(k) rollover is the transfer of funds from one 401(k) plan to another 401(k) plan or an IRA. The IRS allows you 60 days from the date you receive a distribution from an IRA or retirement plan to roll it into another plan or IRA.

How to get started with your 401(k)Â rollover.

Determine the type of account you desire.

Your first choice is the type of account to which you will transfer your funds, and this choice is heavily influenced by the options available to you and your desire to invest.

For Frontier Communications employees considering a rollover, you have two major options: transfer to your current 401(k) or transfer to an IRA. As you evaluate your options, think about the following questions:

Do you want to invest the money yourself, or would you prefer someone else to do it? A self-directed IRA may be a viable option for those who wish to manage their own finances. Even if you want someone else to manage your IRA, you may want to consider a robo-advisor, which can tailor a portfolio to your needs. However, 'do-it-for-me' investors may prefer a rollover into their current employer's 401(k) plan.

Does your old 401(k) offer low-cost investment options with the potential for high returns, and does your current 401(k) offer comparable or superior options? If you are considering a rollover to your current 401(k) plan, you should ensure that it is a better fit than your previous plan. If not, a rollover into an IRA could make a lot of sense, as you will be able to invest in any marketable asset. Otherwise, maybe it makes sense to keep your old 401 (k).
Do you have access to financial planners through your current 401(k) plan? In this case, it may be prudent to roll your old 401(k) into your new 401(k) (k). If you transfer funds to an IRA, you must choose investments and manage the account yourself or hire a professional.

Frontier Communications employees must keep in mind that prior to transferring funds, you must determine which type of account best suits your situation and needs. Those who need assistance with investing may benefit more from a rollover to their current 401(k) plan, whereas those who want to invest the money themselves and have the knowledge to do so may prefer an IRA.

Determine where the funds will go

For Frontier Communications employees transferring funds from an old 401(k) to a new one, you know exactly where your money is going. However, if you're rolling it over to an IRA, you'll need to open one at a bank or brokerage if you haven't already.

If you already have an IRA, you may be able to rollover your 401(k) into it, or you can create a new IRA.

Activate your account and learn how to execute aÂ rollover.

Open your IRA account once you've found a brokerage or robo-advisor that meets your needs. Once the account is created, you can begin the process of transferring your 401(k) funds into it.

Frontier Communications employees should keep in mind that each brokerage and robo-advisor has its own rollover procedure, so you will need to contact the institution for your new account to determine the exact requirements. You must strictly adhere to their procedures. If you are rolling over funds into your current 401(k), contact the administrator of your new plan for instructions.

For instance, if the 401(k) company is sending a check, your IRA institution may request that the check be written in a specific manner and may require that your IRA account number be included on the check.

Again, carefully adhere to your institution's instructions to avoid complications.

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Commence the rollover procedure

If you are working for Frontier Communications and wish to complete a rollover, you will need to fill out paperwork, and may need to communicate with your providers. You have several options for transferring funds from the old provider to the new one, but direct rollover is your best option.

In a direct rollover, your 401(k) funds are transferred directly into your new account without your intervention. It is essential to specify a direct rollover so that the check is not made payable to you. Withdrawals made prior to age 59 1/2 are subject to a 20 percent mandatory tax withholding and a 10 percent additional IRS penalty.

Act quickly

For Frontier Communications employees, you have 60 days from the date you receive your retirement plan distribution to deposit it into a qualified account if you are conducting a rollover. Otherwise, the event will be taxable.

Again, each institution may have its own method for transferring funds. Your 401(k) administrator can send a paper check to you or the institution where you are opening your IRA, or the funds can be transferred electronically via wire transfer.

If you receive a check in the mail, you must ensure that it is deposited into your new account. Act swiftly.

What if you already have a 401(k) with your former employer?

For Frontier Communications employees who have a 401(k) from a former employer, you should evaluate whether a rollover makes sense. You may want to consult a tax expert to ensure that you are making the best decision for your specific circumstances.

Here are some options to consider as you consider what to do with your old 401(k):

Maintain your 401(k) with your former employer.

In this instance, you will not make any changes. Ensure that you actively monitor the performance of your investments in the plan and remain informed of any significant changes.

If you enjoy your current investment options and are paying low fees for them, this option may be suitable for you.

Transfer your 401(k) into an IRA.

For Frontier Communications employees wanting to roll over their 401(k) and avoid a taxable event, this option makes sense. Existing IRA holders may be able to consolidate their IRAs into a single account. In addition, an IRA provides numerous investment options, such as low-cost mutual funds and ETFs.

Greg McBride, CFA, chief financial analyst, notes in a Bankrate article that a multitude of mutual fund companies and brokerages offer no-load mutual funds and commission-free ETFs.

'Also, make sure you meet any account minimums to avoid account maintenance fees for having a low balance,' McBride advises. 'Index-based mutual funds will have the lowest expense ratios. Therefore, there is a way to significantly reduce the number of unnecessary fees.'

Ensure that your IRA institution will accept the type of rollover you wish to make by contacting it beforehand.

In a Bankrate article, Michael Landsberg, CPA/PFS, principal at wealth management firm Homrich Berg claims that 'according to the letter of the law, it is acceptable [to roll a 401(k) into a Roth IRA]. In practice, however, your 401(k) plan may not permit itâ

Transfer your previous 401(k) to your new employer's 401(k) plan

For Frontier Communications employees, If your new employer's 401(k) plan accepts rollovers and the investment options are superior or less expensive than your previous employer's 401(k), this may be a good option. You must conduct research to determine which plan is superior and meets your needs.

The benefits and drawbacks of rolling over a 401(k)

Advantages of a 401(k) rollover:

You can consolidate your 401(k) accounts.

For Frontier Communications employees who switch jobs frequently, you may have multiple scattered 401(k) accounts. The more accounts you have, the more difficult it may be to make deliberate choices. By keeping your retirement funds in a single location, you may be able to manage them more prudently.

In an IRA, you will have more investment options.

With a 401(k), your investment and account options are limited to those offered by the plan. An IRA can provide you with a wider range of investment options. In an IRA, you may be able to invest in stocks, bonds, and other vehicles that your 401(k) may not permit.

You cannot contribute to your previous employer's 401(k) plan. But if you roll this money over into a traditional IRA, you can contribute up to the annual maximum to this traditional IRA over time. You must adhere to the IRA contribution rules.

You'll have the option to move the account wherever you'd like.

If you already have a financial advisor or financial planner with whom you work, for example, you can take your IRA funds to any advisor you choose. Or perhaps you already have a brokerage where a portion of your funds are managed, and you wish to move all of your funds there.

Negative aspects of rolling over your 401(k)

You like your current 401 (k)

If the funds in your old 401(k) do not charge excessive fees, you may wish to remain with that plan. Compare the plan's fund fees to those of an individual retirement account (IRA).

For Frontier Communications employees, in many situations, 'If it isn't broken, don't fix it' is the best piece of advice. If you like your current investment options, it may make sense to remain in your previous employer's 401(k) plan.

A 401(k) may offer advantages that an IRA does not.

If you keep your retirement savings in a 401(k), you may be able to withdraw this money at age 55 without incurring an additional 10% early withdrawal tax, as you would if you kept your savings in an IRA.

For Frontier Communications employees with a 401(k), you can avoid this penalty if distributions are made to you after leaving your employer in or after the year in which you turned 55.

This loophole is inapplicable to IRAs, where withdrawals before age 59 1/2 incur a 10% penalty.

You cannot borrow from an IRA, as you can from a 401(k)

Numerous 401(k) plans allow for loans. Although withdrawals from your retirement account are not recommended, it may be prudent to have this option available in the event of a dire emergency or temporary bind.

If you rollover your funds into an IRA, however, you will not be eligible for a 401(k) loan. You may wish to roll over your old 401(k) into your new 401(k) in order to maintain your ability to borrow money.

Added factors to consider

In a 401(k), net unrealized appreciation (NUA) and company stock are allowed

For Frontier Communications employees, transferring company stock held in a 401(k) to a taxable brokerage account to take advantage of net unrealized appreciation, or NUA, could save you a significant amount of money on taxes. NUA is the difference between the price you paid for company stock in your 401(k) and its current market value.

For instance, if you purchased company stock for $20,000 and it is now worth $100,000, the NUA is $80,000.

The advantage of the NUA strategy is that it allows you to avoid paying ordinary income tax on these distributions of stock from your retirement account. According to Landsberg, this can reach up to 37 percent, the highest tax bracket at present.

You will instead benefit from capital gains tax treatment, which even at the highest tax bracket is only 20%. However, high earners will be subject to an additional 3.8% net investment income tax. And a NUA may be subject to a 10% early withdrawal tax if the funds are transferred before age 59 1/2.

NUA makes the most sense when the disparity between tax rates is greater.

According to a Bankrate article, 'Net unrealized appreciation is a very potent instrument if used properly,' says Landsberg. Therefore, if you properly apply the NUA rules, you can be inventive and potentially earn a substantial windfall.

Beware 401(k) balance minimums

For Frontier Communications employees, If you have left the company and your account balance is less than $5,000, your former employer may require you to transfer it. Consider rolling it over into the plan of your new employer or into an IRA.

According to FINRA, if your previous 401(k) has a balance of less than $1,000, your employer has the option of cashing out your accounts.

Always keep track of your hard-earned 401(k) funds and ensure that they are invested or maintained in a sensible account.

Rollover Facts to Consider:

According to aÂ Pew survey :

Some recent retirees transferred their savings to IRAs (46%), while others reported leaving their savings in their most recent employer plan (54%).

In contrast, near retirees were less likely to plan on leaving their savings with their employer plan at retirement.Â

A quarter of near retirees said they were unsure about what they planned to do with their retirement savings, and only 16% said they would roll over their savings into an IRA.
Half of near retirees and 55% of retirees cited their preference for their employer-sponsored planâs investment options as the most important reason for not moving their retirement savings from their current plan.
Near retirees who planned to roll over their savings into an IRA were motivated by a desire to have greater control over their investments. Although greater control was also a factor for retirees, they were more likely to say that they rolled over their savings in order to gain access to professional advice.

How does Frontier Communications Corporation determine the eligibility and participation criteria for employees in the pension plan? What are the key components that employees should be aware of in terms of service hours and years of service that can impact their pension benefits?

Frontier Communications Corporation determines pension plan eligibility based on employees' transfer from Verizon, crediting prior service under the Verizon Pension Plan to the Frontier Plan. Employees must meet the eligibility and service requirements, including hours of service and years of service, which are integral to calculating accrued benefits. The pension plan specifies that employees' service prior to the transition is recognized for determining their benefits under the Frontier plan(Frontier_Communications…).

In what ways does Frontier Communications Corporation ensure that employees transitioning from Verizon retain their accrued benefits under the new pension plan? Can you elaborate on how prior service will be accounted for under the Frontier Plan and any potential challenges that may arise in this process?

Employees transitioning from Verizon to Frontier retain their accrued benefits, with prior service credited under the Frontier Pension Plan. This is facilitated by a "Mirror Plan," which ensures that benefits under Verizon’s plan are transferred without reduction. Prior service is critical to the calculation of benefits and will continue under the Frontier Plan. However, challenges may arise regarding understanding the precise terms of service credits post-transition(Frontier_Communications…).

How does the merger of the Verizon pension plans with the Frontier Communications Corporation Pension Plan affect employeesâ€™ future benefits? What measures are put in place to ensure that Former Verizon employees receive benefits that are at least as favorable as those they previously had?

The merger of Verizon pension plans into the Frontier Communications Pension Plan guarantees that former Verizon employees receive benefits that are at least as favorable as those they had under the Verizon plan. The benefits accrued under Verizon are preserved, and future benefits are determined similarly, subject to Frontier’s amendments(Frontier_Communications…).

What resources are available for Frontier Communications Corporation employees to access more detailed information regarding their pension plan benefits? How might these resources assist in understanding the changes post-merger with Verizon?

Frontier provides detailed pension information through resources such as the Milliman Benefits Service Center. Employees can access these resources to better understand the impacts of the merger and ensure their benefits remain intact. The Summary Plan Description (SPD) and Summary of Material Modifications (SMM) provide employees with comprehensive updates post-merger(Frontier_Communications…).

Can you explain the process and implications for employees at Frontier Communications Corporation if they decide to appeal a denied pension claim? What steps must they take, and how does the appeals process ensure compliance with ERISA regulations?

If an employee’s pension claim is denied, they may appeal by submitting a written claim to the Plan Administrator, with additional documentation if requested. The appeals process ensures compliance with ERISA regulations, offering employees multiple review stages to reconsider denied claims(Frontier_Communications…).

How does Frontier Communications Corporation communicate updates to its pension plan practices to employees? Are there specific intervals or methods by which changes are shared, and how can employees keep abreast of these changes?

Frontier communicates pension plan updates to employees through various channels, including formal documents like the SMM and SPD. Updates are typically distributed periodically, with critical changes communicated as needed. Employees should regularly check for updates to stay informed(Frontier_Communications…).

In the context of financial planning for retirement, how do past benefits from the Verizon pension plans get integrated into the existing Frontier Communications Corporation pension framework? What advice can be given to employees regarding their financial health as they approach retirement?

Past benefits from the Verizon pension plan are integrated into Frontier’s pension framework through the transfer of assets and liabilities. Employees should review their benefit statements and consult financial planning resources to ensure a smooth transition and optimize their retirement strategy(Frontier_Communications…).

What roles do the Milliman Benefits Service Center and the Claims Review Committee play in supporting the employees of Frontier Communications Corporation regarding their pension claims? How can employees engage with these entities for assistance?

The Milliman Benefits Service Center supports employees with pension inquiries, while the Claims Review Committee handles appeals. Employees can contact Milliman for questions and submit appeals to the Claims Review Committee if disputes arise over benefits(Frontier_Communications…).

As an employee of Frontier Communications Corporation, what should be understood about the standard forms of pension payments available at retirement? How do these options impact the total benefits an employee may receive over time?

Frontier employees should understand the available pension payment options, including annuities and lump-sum distributions. These options affect the total amount received, and employees should consider their long-term financial needs when selecting a payment method(Frontier_Communications…).

How can employees contact Frontier Communications Corporation for more information about their pension plan? What are the best practices for reaching out and ensuring that their inquiries are handled efficiently?

Employees can contact Frontier regarding pension plans through the Milliman Benefits Service Center by phone or via their online portal. It is recommended to prepare inquiries with relevant documentation to ensure efficient handling(Frontier_Communications…).

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

Frontier Communications offers both a pension plan and a 401(k) savings plan for its employees. The Frontier Communications Pension Plan is designed for veteran employees, particularly those in bargaining units, and is structured to provide retirement benefits based on years of service and compensation. Employees must generally have completed five years of service to become vested. The pension formula involves a standard calculation of a fixed amount per year of service. Frontier allows eligible participants to elect a full lump sum if they retire after March 1, 2022, due to the plan’s improved funded status of 91% as of February 2022 (CWA 1298). In addition to the pension, Frontier offers the Frontier Communications 401(k) Savings Plan, which is available to all employees, with specific vesting and matching rules. The company uses Fidelity to manage this plan and offers a match of up to 6% of the employee’s contributions (CWA 1298). Matching contributions are subject to a vesting schedule that requires several years of employment before the company contributions are fully vested. Employees can contribute on a pre-tax or post-tax basis, depending on their financial strategy.

Restructuring and Layoffs: Frontier Communications has undergone significant restructuring efforts, including layoffs as part of its strategy to streamline operations and reduce costs. In recent reports from 2023-2024, the company has been focusing on reducing its workforce to improve efficiency and focus on core business areas. This restructuring is crucial to understand given the current economic climate, where companies are reassessing their operations to stay competitive. The economic environment and evolving market demands are driving such changes, and it’s important for stakeholders to stay informed about these developments. Benefit and Pension Changes: Frontier has also made adjustments to its employee benefits and pension plans. Recent changes include alterations to retirement benefits and 401(k) contributions as part of its broader cost-cutting measures. These changes reflect broader trends in the industry where companies are re-evaluating their benefit structures in response to economic pressures and shifting regulatory environments. Keeping up with these changes is essential for employees and investors alike, given the current tax and political landscape that influences corporate benefit strategies.

Frontier Communications typically offers stock options to executives and senior management. These options grant employees the right to purchase Frontier Communications' stock at a predetermined price within a specified period. The company usually sets performance targets that must be met for options to vest. RSUs: Frontier Communications provides RSUs to various levels of employees, including senior management and other key contributors. RSUs are granted with specific vesting schedules, often based on tenure or performance milestones. The vesting of RSUs is generally linked to continued employment with the company. Specific Information by Year

Frontier Communications Health Benefits 1. Official Company Website: Frontier Communications Careers: Health benefits are listed on their career page, providing information about the types of insurance, eligibility, and plan details. Company Newsroom: Check for any press releases or news related to changes in health benefits or employee healthcare initiatives. 2. Employee Review Websites: Glassdoor: Employee reviews often include information about health benefits and satisfaction with healthcare coverage. Indeed: Look for company reviews and benefits summaries from current or former employees. 3. Benefits Review Websites: Payscale: Provides detailed reports on employee compensation and benefits, including health insurance. Comparably: Offers insights into company benefits, including health insurance plans and employee satisfaction. 4. News Outlets: Business Insider: Check for any articles or news reports related to changes in employee benefits at Frontier Communications. Reuters: Look for any updates or news stories related to employee health benefits. 5. Industry and Financial News: Forbes: Search for any relevant articles discussing health benefits changes or company policies affecting employees. Bloomberg: Look for reports on Frontier Communications’ employee benefits and any associated financial impacts.