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If I have a cash-balance plan, do I need to save anything extra?

Absolutely. Chances are, your plan will not produce enough income to fully cover all your retirement needs. So you need to be saving in other accounts too. Some employers that offer defined benefit plans also offer defined contribution plans, such as 401(k)s and 457 plans, which let you sock away more for retirement. If yours does, consider yourself lucky and sign up, especially if your boss agrees to throw in a matching contribution.

And if you are eligible for a Roth IRA, that is often an unbeatable way to save for retirement. In 2010, individuals with a modified adjusted gross income (MAGI) below $105,000 and couples filing a joint tax return with a MAGI under $167,000 can make a full $5,000 contribution to a Roth IRA; if you're over 50, you can add another $1,000 to boost your annual contribution limit to $6,000. To top of page

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