One of the most common questions we’ve gotten from you guys is, “WTF is a 401(k)?” And since we’re still figuring it out, too, we took your Qs to Kate Dore (she/her), CFP and personal finance reporter for CNBC, to get some answers.

Kate says, “Retirement savings may feel daunting while you’re juggling other priorities like paying off student loans, buying a home, or starting a family. But slowly boosting your contributions by 1-2% over time can make a big difference.”

Keep reading to figure out what that means and more.

Break it down for us (simply, please). What exactly is a 401(k)?
A 401(k) is a workplace retirement savings plan that allows you to contribute and invest part of each paycheck. The biggest perks are automated savings and tax breaks, depending on whether you choose pre-tax or Roth (after-tax) deferrals. Typically, employers offer a matching deposit up to a certain percentage, allowing the account to grow more quickly.

How do we begin investing in our 401(k)?
Here are 3 easy-to-follow tips:

1. If you haven’t been auto-enrolled, the first step is to opt into your company’s 401(k) plan.

2. You may have 2 choices for contributions: pre-tax or Roth (after-tax). Pre-tax contributions offer a tax break by reducing your current-year earnings, but you’ll owe taxes upon withdrawal. While Roth contributions don’t provide an upfront tax break, you can invest and grow the money tax-free.

3. If you’re brand new to investing, you may start with a target date fund, which most 401(k)’s offer. These funds have a mix of investments that gradually shift to more conservative assets based on your projected retirement date. But experts say you may prefer a more customized approach—closely matching your goals and risk tolerance—as retirement approaches.

So, how much should we contribute then?
Saving more while you’re young gives your investments more time to grow, but the ideal percentage depends on your goals. For example, you may scale back on 401(k) contributions while paying off high-interest credit card debt or while saving for a home down payment. According to most experts, though, you should try to contribute at least to your employer match.