A Traditional 401(k) can be one of your best tools for creating a secure retirement. One of the biggest advantages of contributing to a 401(k) is that all the contributions and earnings to your 401(k) are tax-deferred. You do not pay taxes until you take distributions from the fund.

Many companies provide a matching program. For example, if you defer 3% of your salary to your 401(k) they may also match 3% into your account.

Do not pass up on this benefit if your company provides a match.