BACK

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

Most Popular
The problem with Microsoft trying to be Apple
 
Apple to DOJ: Bite me
 
Postal Service offers $15,000 buyouts to 45,000 mail handlers
 
Farmers hit the jackpot in Kansas oil boom
 
Facebook's IPO: Sorting through the legal mess
 
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2012 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2012 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2012. All rights reserved. Most stock quote data provided by BATS.