Making contributions to a 401(k) plan is easy, and should be an integral part of your retirement savings plan. If your employer has a company match (usually between 50% - 100% of every dollar you contribute), you have every reason to participate through payroll deduction. The two most important reasons are (1) you lower your immediate federal income tax liability, since taxes on your contributions are deferred until you make a withdrawal (hopefully when you retire and are in a lower tax bracket) and (2) you can take advantage of your employer's contributions to boost your savings.

Most employers today have a 401(k) plan. Eligibility requirements differ, but as soon as you're eligible to participate, fill out the application and get started. The sooner you enroll, the faster your savings will grow. Remember, it's your money, plus your employer's contribution, which is the icing on the cake. Take advantage of it. If you have questions, your Human Resources Department can provide the answers.

In most companies, you can contribute anywhere from 3% to 20% of your gross pay, and since it's taken out of your salary before you get a check there's no chance that you can forget to make a contribution. As your salary increases, so should your contributions. Remember, you're saving for your future. Give it your best shot!