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Frontier Communications Employees: A Smarter Way to Prepare for 2026 Taxes in Retirement

Healthcare Provider Update: Healthcare Provider for Frontier Communications Frontier Communications typically partners with large insurance companies for their employee healthcare plans. As of 2025, the primary provider for Frontier Communications is UnitedHealth Group, which offers a variety of health insurance plans catering to the organization's workforce. Potential Healthcare Cost Increases in 2026 In 2026, health insurance premiums are projected to soar, with many states experiencing increases that could exceed 60%. The combination of rising medical costs and the potential expiration of enhanced federal premium subsidies is expected to drastically impact consumers. Specifically, over 22 million individuals enrolled in Affordable Care Act (ACA) marketplace plans may see their out-of-pocket premiums rise by more than 75%. As insurers like UnitedHealthcare and Anthem announce substantial rate hikes, the financial strain could leave many families facing unaffordable coverage options, further complicating access to necessary healthcare services. Click here to learn more

“Many Frontier Communications employees are surprised to learn that long-term success can create significant tax friction in retirement. Proactive modeling and coordinated planning can help Frontier Communications employees manage embedded gains thoughtfully and avoid letting a single tax year dictate their financial flexibility.” – Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

“For Frontier Communications employees nearing retirement, the real challenge often isn’t market performance but how and when taxes are triggered. Thoughtful coordination and forward-looking tax modeling can help Frontier Communications employees access their savings with greater flexibility and fewer surprises.” – Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How long-term investment growth can create unexpected tax challenges for Frontier Communications retirees.
How a tax-aware long-short strategy can generate losses to help offset capital gains.
When this strategy may be appropriate—and the risks and tradeoffs to consider.

Mary and Joe* did everything thoughtfully.

They refrained from making rash decisions during market turbulence, invested patiently, and saved consistently throughout their careers. Like many Frontier Communications employees who have spent decades building wealth through disciplined investing and retirement plan contributions, their portfolio grew significantly by the time they retired in their late 60s.

There was only one issue. They had substantial unrealized capital gains on nearly everything they owned.

As we began outlining their retirement income plan—including withdrawals for living expenses and a long-planned home renovation—the numbers became sobering. Selling approximately $300,000 in appreciated investments could have triggered capital gains taxes close to $50,000, depending on federal and state tax brackets.

For reference, long-term capital gains are taxed at 0%, 15%, or 20% federally depending on taxable income, with an additional 3.8% Net Investment Income Tax (NIIT) potentially applying to higher-income households.

Mary summed it up perfectly: “On paper, we feel rich, but it costs money to touch the money.”

Many Frontier Communications employees transitioning into retirement are surprised by how common this situation can be.

When a Successful Investment Becomes a Tax Challenge

Long-term investors frequently accumulate concentrated positions with significant embedded gains. For Frontier Communications employees, this may include long-held company stock, taxable brokerage assets, or other investments that have appreciated steadily over time.

The longer assets are held—and the stronger they perform—the higher the eventual tax liability when they’re sold.

That creates a difficult trade-off in retirement:

- Sell investments and trigger a substantial tax bill.
- Or hold them longer than desired and delay using your own money.

Traditional tax-loss harvesting can be helpful earlier in an investment’s life. But after years of strong markets, many portfolios simply don’t have meaningful losses left to harvest.

That’s exactly where Mary and Joe found themselves.

Introducing a Tax-Aware Long-Short Layer

Instead of immediately selling appreciated assets, we implemented a tax-aware long-short strategy (TALS) inside their taxable account.

To be clear, this is not market timing or speculation. It is disciplined tax management.

Here’s how it worked: Their core long-term holdings remained intact. Then, using a modest amount of borrowing within the account, we added a long-short overlay that included:

- Buying stocks expected to perform well
- Shorting closely related stocks expected to underperform

Because these positions were highly correlated—often within the same industry—they tended to move together.

When markets rose:

- Long positions gained
- Short positions declined in value
- Those short-side losses created tax-deductible losses

When markets fell:

- Long positions declined
- Short positions gained
- Losses were again generated from one side of the structure

Despite market movement, Mary and Joe’s overall portfolio still grew modestly during the year. More importantly, it generated over $60,000 in usable tax losses, which they used to offset their capital gains.

IRS rules allow capital losses to offset capital gains dollar-for-dollar, with up to $3,000 of excess losses deductible against ordinary income annually. ¹ Those losses allowed them to carefully sell appreciated holdings to fund retirement goals while significantly reducing their capital gains exposure.

Joe put it this way: “It didn’t feel like a loophole. It felt like we were finally using the tax code intentionally.”

For Frontier Communications employees with sizable taxable accounts or concentrated holdings, thoughtful tax coordination can make a measurable difference.

The Advantages and Tradeoffs

It’s important to understand that this strategy does not eliminate taxes. It primarily changes the timing of when they are paid.

Over time, the long-short layer itself may build unrealized gains. If fully liquidated later, those gains may be taxable.

The value comes from:

- Managing marginal tax brackets
- Reducing the likelihood of a single-year tax spike
- Preserving flexibility
- Improving after-tax compounding

Mary and Joe weren’t trying to permanently sidestep taxes. They simply wanted to access their savings without losing $50,000 in one year.

Who This Strategy May Be Appropriate For

A tax-aware long-short strategy is generally suited for higher net worth investors facing substantial embedded gains and one or more of the following:

- Concentrated stock positions

- Large taxable brokerage balances

- Required asset sales to fund retirement

- Real estate or business sales

- Significant cryptocurrency gains

- Large one-time expenses

For certain Frontier Communications employees nearing retirement, taxes—not market volatility—can become the primary planning obstacle. When that happens, more advanced planning approaches may be worth evaluating.

Risks to Consider Carefully

This is not a do-it-yourself solution.

The strategy involves leverage, financing costs, and precise execution. Improper implementation can create unintended consequences. Ongoing oversight is necessary.

For many retirees, simpler approaches—such as spreading sales across tax years, coordinating withdrawals during lower-income years, or incorporating charitable planning—may be more appropriate.

In Mary and Joe’s case, the additional complexity was justified by the numbers. But every situation must be evaluated independently.

Why This Matters for Retirement Planning

Taxes are often one of the largest retirement expenses, yet they’re frequently overlooked.

Mary and Joe didn’t pursue this strategy because they wanted something clever. They asked a better question: “Is there a more efficient way to use our money without letting taxes dictate our decisions?” That question reshaped their outcome.

For Frontier Communications employees preparing for retirement, proactive tax modeling can be just as important as investment returns.

The Bottom Line

Selling appreciated investments doesn’t automatically require absorbing a large tax bill—but it does require careful modeling, disciplined execution, and coordinated planning.

A tax-aware long-short strategy can be one of several tools available to the right retiree to maintain flexibility and support after-tax wealth.

Because in retirement, what matters most isn’t just what you’ve earned—it’s what you’re able to keep and use comfortably.

How The Retirement Group Can Help

If you’re recently retired or approaching retirement and holding significant unrealized gains, your only choices are not “pay the tax” or “do nothing.” A detailed tax review may uncover strategies tailored to your specific situation.

At The Retirement Group, we work with Frontier Communications employees to coordinate investment strategy with tax planning so taxes don’t dictate how retirement is funded. Call (800) 900-5867 to schedule a personalized conversation.

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Articles you may find interesting:

Sources:

* Names changed for privacy.

1. Internal Revenue Service. Investment Income and Expenses (Including Capital Gains and Losses) . Publication 550, 14 Feb. 2025, www.irs.gov/pub/irs-pdf/p550.pdf .

2. McClelland, Robert, et al. Net Investment Income Tax: A Primer . Urban Institute, Jan. 2025, www.urban.org/sites/default/files/2025-01/Net%20Investment%20Income%20Tax.pdf .

3. Paradise, Thomas, Kevin Khang, and Joel M. Dickson. Tax-Loss Harvesting: Why a Personalized Approach Is Important . Vanguard Research, July 2024, corporate.vanguard.com/content/dam/corp/research/pdf/tax_loss_harvesting_why_a_personalized_approach_is_important.pdf.

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.