Some employers match their employees’ contributions up to a certain percentage. This is free, tax-deferred money from your employer, and you’ll get it by contributing the minimum your employer requires. Here’s an example of the difference an employer contribution can make to your 401(k): If you earn $50,000 a year and contribute 6% into your 401(k), you will have added $3,000 in your first year. If your employer matches your contribution dollar for dollar, you would have $6,000. Let’s say your employer contributes 50 cents for every dollar you do. You would still be ending the year with $4,500 more in your 401(k). In short, make sure you contribute at least enough to secure your employer’s contribution.