A traditional 401(k) can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 401(k) are tax-deferred. You pay taxes on the money only when it’s withdrawn from the account. Second, many employers provide matching contributions to your 401(k) account, which experts say is like free money. The amount of the match will vary by employer, but often ranges from 50 to 100 percent of your contributions. The combined result is a retirement savings plan you cannot afford to pass up.