Here's why you should still contribute to your employer's 401(k) even if they don't match it

One of the biggest perks of a 401(k) retirement account is the employer match that many companies offer with it. Because a company match is essentially free money, most financial experts advise people to contribute at least as much as their employer's maximum match amount.

But what if your employer gives you a 401(k) without the match? Does it still make sense to participate? The answer is generally yes. Even though you won't get the free money, you should still make the most of what your 401(k) has to offer.

"The true power of participating in your employer-sponsored plan lies in its tax-advantaged benefits," Deborah Owens, a former VP at Fidelity and author of "Wealth Secrets," tells CNBC Select. She says that having your contributions grow in an investment account that's sheltered from taxes gives a powerful boost to your retirement savings.

More specifically, the money you contribute to your traditional 401(k) is taken from your gross income — meaning it comes out of your paycheck before taxes are taken out — which lowers your taxable income, resulting in less taxes paid overall.

That's why a 401(k) is classified as a tax-deferred account: You don't pay taxes on the upfront contributions, but on the withdrawals you make during retirement. This is a pretty nice tax incentive, especially if you plan to be in a lower tax bracket come retirement.

Let's take this one step further — once you're contributing to your employer's 401(k), consider adding a Roth IRA into your retirement-saving mix as well. Having both a 401(k) and Roth IRA not only diversifies your investments but also gives you the best of both worlds when it comes to tax advantages.

That's because you don't pay any taxes on your 401(k) contributions, while with a Roth IRA, you can make tax-free withdrawals (assuming you follow the rules laid out by the IRS). So if you end up in a higher tax bracket during retirement than when you made your contributions, you're still saving money with your Roth IRA withdrawals. And if you're in a lower tax bracket when it's time to make withdrawals from your retirement accounts, it's your 401(k) that gives you an edge with taxes.

Some of the best Roth IRA options are offered by big-name brokerages like Charles Schwab, Fidelity, and Ally Bank, as well as by robo-advisors such as Wealthfront and Betterment.

We generally recommend contributing to a 401(k) even if your employer doesn't match, but you might want to pass over the 401(k) if:

• You can't afford to make any contributions to a retirement account (in which case you should take a hard look at your budget and start planning how you can start saving).
• You don't plan on staying at the company long.
• The 401(k) offered doesn't have a variety of investment choices or comes with high fees.

Take advantage of the tax benefits that come with 401(k)s, regardless of whether or not you're getting a match. And when you're ready to really maximize your retirement saving, add in and start contributing to a Roth IRA.

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