There are many types of retirement accounts offered. A common investment account, a 401- K, is tax-deferred. This means that you are not required to pay state or federal taxes on money deposited into a 401-K; you are responsible for tax payments when you begin to withdraw money from the account. We will assume your employer offers a 401-K retirement account and you contribute 10% of your gross earnings. Determine 10% of your gross earnings to calculate your retirement contribution.