/General/General%208.png?width=1280&height=853&name=General%208.png)
Healthcare Provider Update: Verizon collaborates with Aetna as its primary healthcare provider, offering a range of health plans and services to its employees and their families. Looking ahead to 2026, the healthcare landscape is poised for significant change, as record hikes in Affordable Care Act (ACA) premiums are anticipated. With some states facing increases exceeding 60%, many individuals could see their out-of-pocket premiums rise by more than 75%, particularly if enhanced federal premium subsidies are not extended. This scenario could create an additional burden for Verizon employees, emphasizing the importance of strategic planning for healthcare coverage amidst such dramatic shifts in costs. Click here to learn more
For Verizon employees nearing Retirement - giving appreciated stocks can help you save taxes while giving back to causes that matter - using strategies like donor-advised funds can make The process easy and impactful - says Wesley Boudreaux, of The Retirement Group, a division of Wealth Enhancement Group.
'Verizon retirees can give more by donating appreciated equities or by strategically lowering taxable income and reducing Medicare premiums - work with an advisor to do this,' says Patrick Ray of The Retirement Group, a division of Wealth Enhancement Group.
In this article we will discuss:
1. The Impact of Appreciated Stock Donations.
2. The Tax Advantages of Donating Stocks.
3. Increasing Charitable Contributions through Donor-Advised Funds and Qualified Charitable Distributions.
You might find yourself giving back to a cause that is personally meaningful as you make your way to financial security and retirement. Philanthropy also gives you purpose during your retirement years. If you are considering giving to charity, consider using a strategy that is often overlooked: volunteering, donating appreciated stocks. It examines the tax advantages and best practices for giving equities to charities.
The Influence of Appreciated Stock Donations:
Almost everyone who gives to charities usually gives money - even Verizon employees. But donating appreciated stocks may be a potent and tax-efficient alternative if you are a Verizon employee about to retire or if you are already retired.
Stock Donations Have Tax Advantages:
Giving stocks to a charity can provide several tax benefits. You can first deduct the shares' fair market value as a charitable contribution on your tax return. This means if your equities have appreciated since you bought them, you will pay a deduction greater than the amount you originally paid for the shares. Second, you avoid paying capital gains tax on the stock's appreciated value, which you would have paid had you sold the equities for cash.
An example would be:
You bought 100 shares of XYZ Company for $10 a share in 2015 for $1,000. Today a share is worth $20, so your investment is worth $2,000. Sell these shares and you will pay capital gains tax on the gain but if you give them away you can deduct their fair market value of $2,000 from your income.
Limits and Deductibility:
Know the limits on how much appreciated stock can be deducted as a charitable contribution. Through this process you can usually deduct at least 20% of adjusted gross income (AGI). But some circumstances allow larger deductions. For example, you can deduct 50 percent of your AGI when donating to churches, educational institutions, hospitals and private operating foundations.
Choosing the Right Stocks to Give Away:
If you have a few equities that have appreciated and are unsure which one to donate, pick the stock that has appreciated the most. Donating the most appreciated stock maximizes the benefits to the charity and your tax advantage.
Streamlining the Process with a Donor-Advised Fund:
A donor-advised fund may be a smart move for those who want to make regular stock donations part of their charitable contributions. You can donate shares you wish to donate to a donor-advised fund and at your discretion distribute the donations to multiple charities. When you transfer the stock into the fund - regardless of when the shares are transferred to the charities - you can take the charitable deduction.
IRA Distributions Can Be Leveraged for Charitable Giving:
Those Verizon retirees who are required to take minimum Distributions from their IRA or retirement account can take advantage of Qualified Charitable Distributions (QCDs) or charitable IRA rollovers to increase their Charitable contributions. You can reduce your adjusted gross income by having your IRA administrator send up to $100,000 of your RMD directly to a charity - IRA distributions are generally taxable. No tax deduction is available for this charitable contribution, but your lower AGI may allow you to take other deductions or credits.
Stock Donation Tips:
Donate publicly traded stock instead - it takes less documentation. It is best not to donate equity in master limited partnerships or other publicly traded partnerships because of possible complexities.
As you near retirement and think of ways to give back, consider donating appreciated stocks to charities. The tax advantages of deductions and avoiding capital gains taxes can add value to your charitable contributions and your own financial standing. Understand limits on deductions and explore strategies like donor-advised funds and Qualified Charitable Distributions to maximize your retirement contributions while making a difference in the world. Remember that the joy of philanthropy is as much in giving as in impacting those in need.
A study in the Journal of Financial Planning in June 2023 suggests donating appreciated equities may help high-income retirees offset the Medicare surcharge. Verizon retirees could lower Medicare premiums by reducing adjusted gross income (AGI) through direct stock donations to charities. This new insight should help our 60-something target audience - Verizon employees entering retirement - to manage healthcare costs while donating appreciated equities in tax-efficient ways.
During retirement, give back with appreciated stock donations. Read how stock donations lower your taxes and allow you to deduct the fair market value on your tax return. How to maximize your charitable contributions as a Verizon employee or retiree by selecting the best equities and starting a donor-advised fund. Learn about the tax advantages of QCDs from your IRA - like a lower adjusted gross income and lower Medicare premiums. Donating publicly traded securities streamlines the procedure and helps philanthropic work. Check out the power of stock donations - Get started today.
Donating appreciated stocks is like planting a philanthropic tree that bears fruit and provides a tax shelter. Just as a well-kept tree develops and benefits over time, donating stocks provides long-term benefits for Verizon retirees and those entering retirement. By sowing the seedlings of appreciated stocks, you plant a path to large tax deductions and avoidance of capital gains taxes, like tending to a fruitful tree. Just as a mature tree shelters and feeds those around it, donating stocks also improves your financial picture by reducing your adjusted gross income and - possibly - managing your Medicare costs. Take a leap of faith with stock donations for a prosperous trip toward meaningful philanthropy and an enjoyable retirement.
Articles you may find interesting:
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
- Corporate Employees: 8 Factors When Choosing a Mutual Fund
- Use of Escrow Accounts: Divorce
- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
- 401K, Social Security, Pension – How to Maximize Your Options
- Have You Looked at Your 401(k) Plan Recently?
- 11 Questions You Should Ask Yourself When Planning for Retirement
- Worst Month of Layoffs In Over a Year!
Added Fact:
Data from a survey by Fidelity Charitable in 2023 show that more high-net-worth individuals - including Verizon employees and retirees - are using donor-advised funds (DAFs) to manage their Charitable giving. The research found that DAFs are a nebulous tool for philanthropy - donors can contribute appreciated assets like stocks and receive immediate tax benefits while recommending grants to their chosen charities over time.
That fits in with the article's focus on donating appreciated stocks:
DAFs are a useful tool for managing and maximizing charitable contributions in retirement - and are especially relevant to our 60-something target audience looking for meaningful ways to give back while optimizing their money.
Added Analogy:
Giving appreciated stocks to charity is like planting a financial tree in your retirement garden. Just like a well-kept tree bears fruits and shelters from taxes and the capital gains storm, donating stocks supports meaningful causes as well as shelters from taxes and the capital gains storm. Sowing the seeds of appreciated stocks produces big tax deductions and a smoother financial landscape, like planting a fruitful tree that will bear fruit for years. Just as an expert gardener tends to his garden with care and precision, you can manage your philanthropy with strategic donor-advised funds so you can donate stocks effectively and enjoy the rewards over time. Accept the power of stock donations as you journey toward impactful philanthropy and a comfortable retirement 'like a gardener tending an orchard.'
Sources:
1. Fidelity Charitable . 'Donate Stock to Charity.' Fidelity Charitable , 2023, www.fidelitycharitable.org/giving-account/what-you-can-donate/donating-stock-to-charity.html .
2. BlackRock . 'Donate Stock to Charity for Bigger Tax Savings.' BlackRock , 2023, www.blackrock.com/us/financial-professionals/insights/donate-stock-to-charity-for-tax-savings .
3. William Blair . 'Gifting Appreciated Securities to a Donor-Advised Fund Program.' William Blair , 2023, www.williamblair.com/Insights/Gifting-Appreciated-Securities-to-a-Donor-Advised-Fund-Program .
4. TIAA . 'Maximizing Tax Benefits Through Strategic Charitable Giving.' TIAA , 2023, www.tiaa.org/public/retire/services/preparing-for-retirement/giving/charitable-giving .
5. First Tech Federal Credit Union . '5 Benefits of Donating Appreciated Stock.' First Tech Federal Credit Union , 2023, www.firsttechfed.com/articles/invest/benefits-of-donating-appreciated-stock .
How does the Verizon Pension Plan facilitate retirement income for long-term employees, and what specific benefits can employees expect when enrolling in the retirement program provided by Verizon? What unique features does the Verizon Pension Plan offer compared to other retirement plans an employee might have encountered, and how can employees maximize the benefits of these features throughout their career at Verizon?
Verizon Pension Plan Benefits: Verizon's Pension Plan offers substantial benefits aimed at facilitating a secure retirement for long-term employees. Upon enrolling in the retirement program, employees can expect defined benefits that are based on their salary and years of service, ensuring a predictable and stable income after retirement. Unique to Verizon, compared to some other plans, may include options for early retirement under certain conditions and a choice between annuity payments or a lump-sum distribution upon retirement. Employees can maximize these features by planning for long-term service and considering their retirement income needs early in their careers.
In what ways can employees at Verizon strategize their rollover decisions when transitioning from the Verizon Pension Plan to other retirement savings plans upon leaving the company? What factors should be considered by Verizon employees to ensure they are making informed choices regarding rolling over funds to a traditional IRA or another qualified employer plan?
Rollover Strategies: When transitioning from the Verizon Pension Plan to other retirement savings options upon leaving the company, employees should strategize their rollover decisions carefully. Factors to consider include the tax implications, the investment options available in the rollover destination, and the timing of the transfer to avoid penalties. Verizon employees should evaluate the benefits of rolling over to a traditional IRA or another employer's plan, considering their future financial needs and retirement goals.
What are the implications of the recent IRS limits for 2024 concerning contributions to retirement plans for Verizon employees, and how does Verizon align its offerings with these federal regulations? Additionally, how can Verizon employees best take advantage of these limits to enhance their retirement savings while adhering to tax regulations?
IRS Contribution Limits: The implications of IRS limits for 2024 are critical for Verizon employees as these limits dictate how much can be contributed tax-deferred into retirement plans. Verizon aligns its offerings with these federal regulations by adjusting contribution limits in their plans accordingly. Employees are encouraged to maximize their contributions to take full advantage of tax-deferred growth, especially when IRS limits increase, thereby enhancing their retirement savings while adhering to tax regulations.
How does the special tax treatment for lump sum distributions from the Verizon Pension Plan affect employees who receive their benefits early or have specific circumstances, such as being born before 1936? What options do these employees have to manage their tax burden effectively, and how can they best navigate these complicated rules while planning for their retirement?
Tax Treatment of Lump Sum Distributions: The special tax treatment for lump sum distributions from the Verizon Pension Plan can significantly affect employees who opt to receive their benefits early or under specific circumstances like being born before 1936. These employees have options to manage their tax burden effectively by opting for ten-year averaging or capital gain treatment on eligible distributions, allowing for a potentially lower tax rate on their pension benefits.
For surviving spouses and alternate payees of Verizon employees, what are the specific benefits available under the Verizon Pension Plan? How do these benefits compare to those available to employees, and what steps must surviving spouses or alternate payees take to ensure they receive their entitled benefits without delays or complications?
Benefits for Surviving Spouses and Alternate Payees: For surviving spouses and alternate payees, the Verizon Pension Plan offers benefits similar to those available to employees, such as annuity payments or lump-sum options. These beneficiaries must take certain steps to ensure they receive their benefits without delays, such as providing necessary documentation and adhering to plan rules. The plan details and processes for claiming benefits should be clearly understood to avoid complications.
How can Verizon employees utilize the resources available through the Verizon Benefits Center to better understand and manage their retirement benefits? What specific tools and services does the Benefits Center provide, and how can these resources assist employees in making informed decisions regarding their pension plan options?
Utilizing Resources at the Verizon Benefits Center: Verizon employees can utilize various tools and services provided by the Verizon Benefits Center to manage and understand their retirement benefits. The Benefits Center offers personalized consultations, detailed plan documentation, and tools for estimating pension benefits and planning retirement income, assisting employees in making informed decisions about their pension plan options.
What challenges might Verizon employees face regarding eligibility and tax withholding when receiving their pension payments, and how can they mitigate these issues? It's crucial for employees to understand the mechanics of eligibility regarding rollovers and payment processing; what key pieces of information should they be aware of to avoid unexpected taxes?
Challenges in Eligibility and Tax Withholding: Verizon employees might face challenges regarding eligibility and tax withholding when receiving pension payments. Understanding the plan's criteria for eligibility, the implications of rollovers, and the impact of mandatory withholding on distributions is crucial. Employees can mitigate these issues by consulting with the Verizon Benefits Center or a tax advisor to ensure compliance and avoid unexpected taxes.
What is the process for Verizon employees wishing to initiate a direct rollover from the Verizon Pension Plan, and what documentation will they need to prepare? Can employees receive assistance from the Verizon Benefits Center during this process, and how does using a direct rollover benefit them compared to other forms of payment?
Direct Rollover Process: The process for initiating a direct rollover involves deciding the destination of the rollover (traditional IRA or another employer plan), completing necessary documentation, and potentially seeking assistance from the Verizon Benefits Center. A direct rollover helps in avoiding immediate taxes and maintaining the tax-deferred status of retirement savings.
In terms of retirement preparedness, how does the pension plan at Verizon accommodate employees’ needs for financial security in their senior years? What additional education or resources does Verizon provide to assure that employees fully understand their retirement options and the importance of planning ahead?
Retirement Preparedness: Verizon's pension plan is designed to accommodate the financial security needs of employees in their senior years. In addition to the pension benefits, Verizon provides educational resources and planning tools to ensure employees understand their retirement options and the importance of early and consistent retirement planning.
How can employees reach out to the Verizon Benefits Center for further information about the pension plan and other retirement benefits? What specific contact methods are available to employees, and how can these interactions enhance their understanding and management of retirement benefits provided by Verizon?
Contacting the Verizon Benefits Center: Verizon employees seeking more information about their pension plan and other retirement benefits can reach out to the Verizon Benefits Center through various contact methods such as phone, email, or online portals. These interactions are crucial for enhancing understanding and effective management of retirement benefits, ensuring employees make the most of the benefits available to them.
-2.png?width=300&height=200&name=office-builing-main-lobby%20(52)-2.png)
.webp?width=300&height=200&name=office-builing-main-lobby%20(27).webp)
-2.png)
.webp)