How can I take advantage of my employers 401(k)?

Your 401(k) is an easy way to save for retirement through payroll deductions at work. And these tax-free contributions can reduce your taxable income. For example: If you're in the 25 percent tax bracket and contribute $100 to your 401(k), you'll save $25 in taxes. Your retirement account grows by the entire $100, but your paycheck only decreases $75.

Also, don't turn down free money! If we told you we'd put $5 into your savings account for every $10 you put in, you'd be crazy not to take the deal, right? Most companies offer a 401(k) match program. Contribute the maximum amount to your account. Otherwise it's like throwing away free money from the company.

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