 Just the tip. Just the tip. Just the tip. Just the tip. The traditional 401K is the retirement plan most commonly offered by corporations. It is a defined contribution plan, meaning you, the employee, are responsible for contributing to your traditional 401K. As a rule of thumb, we at the CNPF recommend that you put at least 10 to 15% of every paycheck into your 401K. The biggest incentive for contributing to a traditional 401K, besides being able to retire one day, is that your traditional 401K contributions are pre-tax. Traditional 401K contributions are taken out of your paycheck before the government taxes you, thereby lowering your tax rate. However, that doesn't mean traditional 401K money is tax-free. When you start withdrawing money from your traditional 401K, the government takes its cut. Another drawback of the traditional 401K is that if you withdraw money before you turn 59.5, you will be hit with a very high fee and other frustrating nonsense. Withdrawing money from a traditional 401K is a bad idea. Trust us. Also, you may not have full control over how your traditional 401K is set up. Depending on which investment company your employer has chosen, you may be paying high fees to have your retirement savings poorly managed. Yet despite these possible drawbacks, we still recommend you contribute some money to your traditional 401K. If for no other reason than to get the employer match. Chances are your employer offers to match a certain percent of your retirement contributions if you put a certain percent of your paycheck into their 401K. Even if you are on a tight budget, contribute enough money to your traditional 401K to get the full employer match. Whether you're a Marxist or not, if you work for a living, you're exchanging your time for money, so get as much money as possible. I'm Comrade Roark, and you are The Revolution. Produced in collaboration with Fort Collins Public Media.