If your employer offers a retirement plan, then taking advantage of that plan is essential to building wealth. Many companies now offer what are called 401(k) plans, which is an IRS code for this type of retirement vehicle. Companies contribute a portion of their earnings to these plans and allow you to put some of your money tax-free with an additional company match also offered. Frankly, there are few other ways to build wealth as quickly and safely as a 401(k).

If your new employer has a 401(k) or similar retirement plan, then one of the first things you should do is sign up as soon as you’re eligible to do so. Some companies will make him wait six months or a year before he can join and then he will only become fully vested after a certain period of time, usually three years. This means that not all the money in your account contributed by the company belongs to you until it is fully invested.

Your employer will explain all the details of your 401(k) plan to you before you make a decision whether or not to join. The good news is this: More and more companies are automatically enrolling you so that if you never contribute a penny, you can get a profit share of 3 or 4 percent of your salary added to your account per year.

Also, most plans will allow you to contribute a certain percentage of your salary per pay period, and that money will not be subject to federal government taxes. This means that if your plan allows you to contribute 10% and you choose the maximum amount, then your $50,000 salary is effectively reduced to $45,000 as far as the IRS is concerned. The less you have, the less you will pay taxes. Best of all, the “missing” $5,000 adds up quickly in your interest-bearing retirement account.

It gets even better than that: many companies will match your earnings. For example, if you contribute one dollar, the company will add 50 cents up to a certain amount. So for every dollar you earn, you get a 50% return, not including profit sharing. Do you know any other place where you can earn 50% of your investment? Nothing legal, that is!

So, open your retirement account as soon as possible and watch the funds flow in with your company’s matching contribution and profit sharing and your tax-free personal contributions.