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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
'Verizon employees considering retirement abroad should recognize that worldwide taxation, limited Medicare coverage overseas, currency fluctuations, and cross-border estate coordination can materially influence long-term income and legacy planning. Be sure to take a comprehensive view of these factors and consult qualified legal and tax professionals before making an international move.' – Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Verizon employees exploring retirement abroad should carefully weigh how ongoing U.S. tax obligations, health care coverage limitations, currency exposure, and cross-border estate considerations may shape their long-term financial picture. Aim to coordinate with experienced planning, legal, and tax professionals before committing to an international transition.' – Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
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Key U.S. tax rules that follow retirees overseas.
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Health care and Medicare considerations for living abroad.
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Financial planning complexities, such as currency risk and estate planning.
By Brent Wolf, CFP®, Wealth Enhancement
For decades, many Americans have dreamed about retiring abroad—whether for lifestyle reasons, proximity to family, or simply a change of scenery. For many Verizon employees, the idea of enjoying retirement overseas after years of dedication can feel especially rewarding.
For individuals over 55 with substantial invested assets, retiring abroad may be possible. However, it requires careful planning. Moving overseas does not automatically simplify finances and, in some cases, it can increase complexity—particularly when retirement income includes employer-sponsored plans.
Before making a decision, there are several important financial considerations.
1. The U.S. Tax System Follows You
The United States generally taxes U.S. citizens on their worldwide income, regardless of where they live. This remains true even if a Verizon employee establishes residency in another country.
That means:
- Traditional IRA and many employer-sponsored retirement plan withdrawals are generally taxable for U.S. purposes.
- Required Minimum Distribution (RMD) rules apply to most tax-deferred retirement accounts, such as traditional IRAs and many employer plans (though not to Roth IRAs for original owners).
- Social Security benefits may be taxable depending on income levels.
- Capital gains must continue to be reported.
- Depending on thresholds, foreign financial accounts and assets may need to be reported, including potential FBAR (FinCEN Form 114) and/or FATCA Form 8938 filings.
International tax compliance requirements remain in place after moving abroad, and penalties for noncompliance can be significant. U.S. citizens residing overseas typically continue to have federal filing obligations.
2. Medicare and Health Care Outside the United States
Medicare generally does not cover health care services received outside the United States, except in limited circumstances. Some Medigap policies may provide limited emergency coverage abroad, but traditional Medicare coverage is largely restricted to care received within the U.S. 1
As a result, retirees living overseas often evaluate alternative health care arrangements, which may include purchasing additional coverage. For Verizon employees accustomed to employer-sponsored health care benefits, this transition requires thoughtful comparison of costs and coverage.
Health care planning for retirees—including income-related Medicare premium considerations and broader long-term planning—can become more complex when residency changes.
3. Currency Risk
If retirement income is denominated in U.S. dollars but expenses are paid in another currency, exchange-rate fluctuations can affect purchasing power. This may be particularly relevant for Verizon retirees relying on distributions from U.S.-based retirement accounts.
For example, a significant change in currency exchange rates can increase or decrease the effective cost of living when converting dollars into foreign currency. This exposure introduces additional variability that should be evaluated in long-term income planning.
4. Estate Planning Across Borders
Estate planning can become more complex when assets or beneficiaries span multiple jurisdictions. Verizon employees who accumulate assets across different states or countries during their careers may already have layered estate considerations.
Many countries have forced heirship rules. Some impose inheritance taxes on local assets. Legal treatment of trusts may differ from U.S. law, and foreign real estate may require additional planning to align with U.S. estate documents.
When individuals own property or financial accounts outside the United States, coordination between U.S. estate planning documents and local legal requirements is often necessary.
Evaluating the Decision Carefully
Retiring abroad can be appealing for lifestyle and personal reasons. However, U.S. taxation of worldwide income, limited Medicare coverage outside the country, currency exposure, and cross-border estate planning considerations are important financial factors for Verizon employees to evaluate before making a long-term move.
A thoughtful analysis should consider how relocation may affect income planning, tax obligations, health care arrangements, and legacy goals over the coming decades.
How The Retirement Group Can Help
Relocating internationally in retirement introduces tax, health care, estate, and income planning considerations that deserve careful review. The Retirement Group works with individuals navigating complex retirement decisions, including Verizon employees evaluating international retirement, and can help assess how a move abroad may affect long-term planning.
If you would like guidance tailored to your situation, you can contact The Retirement Group at (800) 900-5867 to discuss your retirement planning questions.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- How Are Workers Impacted by Inflation & Rising Interest Rates?
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Sources:
1. Centers for Medicare & Medicaid Services. Medicare & You 2026 . U.S. Department of Health and Human Services, 2026, https://www.medicare.gov/publications/10050-medicare-and-you.pdf .
2. Internal Revenue Service. Tax Guide for U.S. Citizens and Resident Aliens Abroad . Publication 54, Dec. 2025, https://www.irs.gov/pub/irs-pdf/p54.pdf .
3. Congressional Research Service. Social Security Benefit Taxation Highlights . IF11397, 23 Sept. 2024, https://www.congress.gov/crs_external_products/IF/PDF/IF11397/IF11397.4.pdf .
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.
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