HORAN Cincinnati presents about Retirement Planning
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PRESENTING
EVERYTHING ABOUT RETIREMENT PLANNING
About us
 HORAN provides legendary service, employee benefits 
consulting, wealth management and life insurance for 
both corporate and individual clients.
 Since 1948, HORAN has served as a trusted advisor 
providing legendary service, support and partnership in 
employee benefits consulting, wealth management and 
life insurance for estate and business planning.
 For over 70 years, HORAN has served as a trusted 
advisor and thorough planner in the areas of life 
insurance for estate and business planning, employee 
benefits consulting and wealth management.
 With offices in Cincinnati, Columbus and Dayton, Ohio; 
and Ft. Mitchell, Kentucky, HORAN serves both 
corporate and individual clients in 48 states. HORAN 
has a strong regional presence with a national 
footprint. We bring the best services, resources and 
value to our clients through premier national 
partnerships with M Financial Group, United Benefit 
Advisors and Retirement Planning Advisory Group.
 Our integrity, commitment to excellence and industry 
knowledge are foundations upon which HORAN has built 
a reputation for delivering high quality products and 
services. 
Retirement 
Meditation  - This week I digress from the previous 
When Should I Start Retirement Meditation cadence. Why? My fourth 
(of five children) graduated from college last 
Saving for week. In watching the ceremonies, my mind 
Retirement? drifted: How many new college graduates are 
thinking about retirement? Or, at the very least, 
saving for retirement?
I have already addressed this week’s 
Retirement Meditation question with the oldest 
three. My response: “Years ago. Start now if 
you haven’t already.” I’m anticipating this same 
question from the newest college graduate once 
he’s settled in his new hometown (Tampa, 
Florida).
Getting an early start saving for retirement 
allows individuals to save methodically, over a 
HORAN long period of time, with the incredible effect of 
compounding investment returns. The anxiety of 
8044 Montgomery Road short-term investment markets becomes muted 
Suite 640 because long-term, historically, most investment 
Cincinnati, OH, 45236 returns have outpaced inflation. 
Employee education in the 1990’s through today 
513-745-0707 has focused on retirement savings 
accumulation. Examples abound of the 25-year-
https://horanassoc.com/ old who saves immediately and the colleague 
who delays saving for 5- to 10-years or longer. 
In each illustration, the person starting earliest 
has a higher account balance at age 65 than the 
colleague who delays saving. In fact, some of 
the illustrations go so far as to have the early 
saver stop saving for retirement after 20-years.
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Even in these illustrations, the early saver – thanks to the investment compounding effect – 
has a higher account balance than the delayed saver. Granted, these are hypothetical 
illustrations and results will vary. Regardless, here are some solid guidelines for successful 
retirement savings:
Defer into your organization’s retirement plan as soon as you’re eligible.
If your organization offers a matching contribution, ensure that you are capturing all of that 
employer match.
If you are covered by a high-deductible health plan, save into the health savings account 
(HSA).
Do your best to not touch any of these funds you are saving. They carry incredible tax 
benefits.
Invest smartly. Remember, if you’re willing to celebrate a +30% annualized return, you are 
also indicating that you can accept a negative 30% annualized return. Investment returns 
are based on risk. The higher the risk, the greater the potential for incredible investment 
gains…and losses.
Let time be your friend. 
Even if some or much of your youth has slipped away, still save. You’ll be delighted with 
anything you have saved for your future.
When did you start saving for retirement?
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Retirement 
Meditation  - Who For qualified retirement plan participants who are 
should I name as married, the spouse must be the 100% primary 
the beneficiary of beneficiary. If the spouse is not the named 100% primary beneficiary, the spouse must consent to 
my retirement plan that fact in writing and that consent must be 
account? witnessed by the plan administrator or a notary.For unmarried participants of a qualified retirement 
plan, any person can be named as primary 
beneficiary.
Selecting multiple primary beneficiaries is perfectly 
acceptable. However, if the participant is married, 
the spouse must consent in writing. Example: 
Married participant designates primary 
beneficiaries as spouse 50% and two children 
25% each. The spouse – even if the children 
belong to the spouse – must consent to this 
designation in writing.
HORAN Any person(s) can be named as contingent 
8044 Montgomery Road beneficiary. The contingent beneficiary is paid if 
the primary beneficiary has pre-deceased the 
Suite 640 participant.
Cincinnati, OH, 45236 When you encounter any major life change, 
evaluate your retirement plan beneficiary 
513-745-0707 designations. Marriages, divorces, children may 
https://horanassoc.com/ require beneficiary designation updates.
Seek appropriate professional assistance if you 
have complex estate matters, such as high net 
worth or beneficiaries with special needs.
Designating one or more charities as beneficiary 
could reduce or eliminate taxes that would 
otherwise be imposed on the retirement plan 
assets. Seek appropriate professional assistance 
before naming one or more charities.
Be aware that IRA’s (and life insurance policies) 
have similar but different rules than qualified 
retirement plans.
Without looking – Who is named as your primary 
beneficiary?
Retirement 
Meditation : How Many employers include short-term disability, 
does disability which deals with temporary employment 
insurance work into interruptions, at no cost as part of their benefits package for employees. Employers also often 
my retirement include long-term disability (“LTD”) with its total 
planning? benefits solutions package. Sometimes the LTD is automatically included (and paid for) by the 
employer; sometimes the costs are shared; and 
sometimes the employee must elect the coverage 
and pay all the associated premium costs. 
Many employer-sponsored group LTD plans cover 
60% of compensation. Is 60% of what you 
ordinarily earn sufficient to meet your basic living 
expenses? For anyone earning $50,000 per year, 
the LTD would pay $30,000 in annual benefits; at 
$100,000, the LTD would pay $60,000. Whatever 
your income, does that reduced amount cover 
your mortgage or rent, car payment, utilities, and 
HORAN groceries? What about credit card and student 
loan debt and all the other miscellaneous 
8044 Montgomery Road expenses?
Suite 640
Without adequate LTD coverage, a long-term 
Cincinnati, OH, 45236 disability could affect your accumulated savings 
513-745-0707 and investments. Inadequate LTD coverage can 
even put your retirement savings at risk through 
https://horanassoc.com/ early, unplanned, or accelerated withdrawals. 
There are several questions employees should 
ask when evaluating employer-sponsored LTD 
coverage:
 
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Is my current LTD coverage adequate to cover my basic living needs?
Is my current LTD coverage adequate to maintain my lifestyle? If not, am I willing to 
sacrifice?
Is my current LTD coverage calculated using my total compensation or base 
compensation? Some policies may exclude commissions or bonuses.
Is my current LTD coverage capped, like in the surgeon’s situation?
Will my LTD benefits be taxed effectively further reducing the benefit?
How do potential social security disability payments factor into my LTD policy?
Does a supplemental LTD policy make sense? If it does, should I choose one that includes 
provisions that would make retirement plan contributions on my behalf?
Could you maintain your lifestyle if you became permanently disabled?
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Retirement Some plans offer no in-service withdrawal options 
Meditation : Should while others offer three or more. The most popular 
I take an in-service in-service withdrawal types are:
withdrawal from my Hardship withdrawals
retirement plan? Age 59-1/2 in-service withdrawalsContribution-source specific withdrawals, such as 
in the example above
Plans offering hardship withdrawals most often 
adopt the IRS safe harbor standards for allowing 
participants to take a hardship withdrawal. By 
following the IRS safe harbor standards, the plan 
administrator is limiting hardship withdrawals to 
certain reasons and creating a fiduciary safety-net 
in the administration of the hardship provisions. 
Plans offering age 59-1/2 in-service withdrawals 
permit participants aged 59-1/2 or older to take 
distributions from their retirement plan while they 
HORAN continue employment. These distributions can be 
rolled over into an IRA or taken as taxable. The 
8044 Montgomery Road key factor? At age 59-1/2, the 10% excise tax 
Suite 640 penalty on early withdrawal no longer applies. 
However, personal income taxes can and will 
Cincinnati, OH, 45236 apply to taxable distributions.
513-745-0707
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Contribution-source specific withdrawals are most often related to the rollover source. 
These are plan assets the participant electively rolled into the employer’s plan from an IRA 
or a former employer’s plan. Most often, but not always, the plans designed to permit 
incoming rollovers will also allow those rollover funds to be withdrawn at any time. They 
can be distributed into an IRA with no tax consequences, or they can be taken as taxable. 
If the participant taking the taxable in-service withdrawal is younger than age 59-1/2, the 
10% tax penalty (and personal income taxes) will apply. 
Regardless of the type of in-service withdrawal, the biggest issue for most participants is 
the permanent removal of accumulated retirement savings. In-service withdrawals, 
especially those taken as taxable, are effectively removed from the participant’s retirement 
savings, which could cause a later hardship especially as the participant nears or enters 
retirement. Remember, these funds taken as taxable distributions are no longer available 
to earn future growth and no longer available at retirement.
Will you let your retirement savings success be hampered by an in-service withdrawal?
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Contact us
HORAN
8044 Montgomery Road 
Suite 640
Cincinnati, OH, 45236
513-745-0707
https://horanassoc.com/