New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Frontier Communications Employees: Three Key Strategies for Tax-Free Giving to Your Family

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

'Gifting is a great way to transfer wealth but if it is not done correctly, it can result in taxes being paid on the wrong account,' says Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement Group.

“High net worth individuals are looking for ways to help their families now rather than later, but they need to make sure their generosity is consistent with a good financial plan,” says Mavar.

In this article, we will discuss:

The tax consequences of giving away money during one’s lifetime as opposed to on death.
Strategies for enhancing tax exemptions when giving out large amounts of money.
The short and long-term effects of gifting on both the donor and the recipient.

The employees of Frontier Communications companies are often involved in the financial planning and therefore try to make significant gifts of money to their families while they are still alive rather than only through bequests after death. This trend is easy to explain: it is fun to see the results of such generosity in the modern world, for instance, to help with buying a home in the current real estate market or to pay for college for grandchildren. However, this approach comes with its own set of challenges, especially in terms of tax efficiency.

Giving Wisely: How to Increase the Impact of the Gift While Minimizing the Tax Risk

One of the main benefits of bequeathing assets like stocks is the “step up” in basis, which sets a new value of the asset at the market price at the time of the owner’s death. This means that heirs can sell the inherited stocks at the current high prices without having to pay capital gains tax on the proceeds as long as the sale price equals the stepped up basis. On the other hand, gifts of stocks during one’s lifetime are not exempt from this adjustment. The original purchase price, or basis, stays there, which can result in very high capital gains taxes if the stock is sold when market prices are high.

However, if the gift recipient’s income is below the following limits: $47,025 for singles and $94,050 for married couples filing jointly, they can sell these stocks without having to pay capital gains taxes on them. This creates a perfect situation for Frontier Communications employees to help their family members who are starting their careers or earn less than these limits. It is important to avoid such transactions as they may lead to higher taxable income and, therefore, taxes.

Taking Full Advantage of the Gift Exemptions

According to the current rules, an individual can make a gift of up to $18,000 per recipient in 2024 without having to report the gift on his or her tax return and have it count against the taxpayer’s lifetime gift tax exclusion. In the case of married couples, the split gifting technique enables each spouse to make an $18,000 gift to the same person, thus enabling the two to give $36,000 every year tax free. In case gifts are made which are more than these figures, the excess must be reported on IRS Form 709, however, taxes are not due until the exclusion amount is exceeded which is currently $13.61 million. The annual exclusion is also available for gifts that are made during the year of death and in the year following death.

Another way to avoid the annual gift tax exemption is to make the payment directly for the health or education of another person. For instance, payments made directly to educational institutions are not considered as part of the $18,000 annual exclusion for gifts and, therefore, Frontier Communications employees can provide generous support without compromising their lifetime gift exemption. This way, the money is used precisely for its intended purpose and there is no chance that the recipient will spend it on something else or become financially dependent.

Assessing the Financial Impacts of Gift Giving

This means that Frontier Communications employees should also consider the tax consequences of the financial gift that they are planning to give to their recipient. Support should always be given with the aim of empowering the recipient, not enabling them or making them dependent. This assessment is important in order to determine if the giving is helping or harming the recipient.

The donor’s financial stability is just as important as the recipient’s. Such gifts can be made sustainable by a financial plan that has been developed by professional advisors. In this way, Frontier Communications employees can ensure that they are able to give in a way that is consistent with their financial future.

In conclusion, it is an excellent practice to give but it is advisable to know the strategies that can be employed in order to reduce the amount of tax paid and at the same time, achieve the desired results. By looking at the short and long-term consequences of their generosity, Frontier Communications employees can make reasonable decisions that will benefit them and their families. For those who are involved in the process of financial gifting, more specific plans and options can be provided by thorough planning tools and the advice of financial professionals.

Articles you may find interesting:

An IRA Qualified Charitable Distribution (QCD) can also be a useful approach, especially for retirees. An individual who has reached the age of 70½ can transfer up to $100,000 each year from his or her IRA to a charitable organization. This can help achieve charitable goals while also potentially leaving the donor in a lower tax bracket, as the donation is not included in taxable income and satisfies RMDs. This approach is in harmony with strategic estate planning and holds the advantage of not affecting non-charitable beneficiaries.

Sources:

Internal Revenue Service. 'Gift Tax.' IRS.gov, 2024, www.irs.gov/businesses/small-businesses-self-employed/gift-tax .
Investment Company Institute. '2024 Annual Report on U.S. Retirement Market.' ICI.org, 2024, www.ici.org/research .
Wealth Enhancement Group. 'Estate Planning and Wealth Transfer Strategies.' WealthEnhancement.com, 2024, www.wealthenhancement.com/insights .
U.S. Securities and Exchange Commission. 'Understanding Capital Gains Tax.' SEC.gov, 2024, www.sec.gov/investor .
National Association of Estate Planners & Councils. 'Best Practices in Lifetime Wealth Transfers.' NAEP.org, 2024, www.naepc.org/articles .

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.