Let's be conservative and look at someone just starting out on their career and say they're making $35,000. We'll inflate that salary by 3 percent a year until they retire at age 70. The average return on equities for that time period (48 years) is roughly 11 percent. We'll be even more conservative, however, and assume their retirement savings grow at only 8 percent. Finally, we'll use the average company 401(k) match (2.7 percent) and compare that to adding an additional 1 percent (for a total of a 3.7 percent company 401(k) match).

The difference is astounding. This extra 1 percent will yield an additional $285,166 when the employee retires. That's a quarter of a million dollars!

Are you prepared to experience a greater shock? If we up the starting salary to $65,000 (not unusual for engineers and other specialty positions), then that extra 1 percent brings more than half a million dollars ($529,595) at retirement.

To think, some thought the new tax law would kill the 401(k) plan. The reality is quite the opposite. The law has breathed new life into America's greatest retirement savings vehicle.

The challenge now is to encourage more companies to offer 401(k) plans and their own matching program. There's been a lot of chatter that we'll finally see legislation allowing for the creation of open 401(k) plans. Of course, they've been saying this for a while, so I'll believe it when I see it.

There's no question employees who have a 401(k) plan get a head start when it comes to retirement savings (and, by proxy, retirement itself). This match is the key. At that $35,000 starting salary, every 4 percent put into a 401(k) through a company match grows to more than a million dollars at retirement. (For those lucky enough to start at $65,000, that 4 percent company contribution grows to two million dollars.)

Never believe a story about proposed legislation until that law is actually passed.