Money you put into the 401k is not taxed now but it will be taxed when you withdraw it. So when your employer invests into your 401k it is eventually going to be taxed taxed. The government is making money off of us no matter what. BUT I like the ROTH IRA setup that your money grows tax free and then you can withdraw it tax free. You just pay your payroll taxes on the money you make then invest. However, there is income and contribution limits. I tell younger kids to jump at this option if possible as well as the 401k. HOWEVER the ROTH IRA limit didn’t increase for 2022???
If the government really wants old people to be set for retirement they should set the ROTH IRA limit at 20,500 and allow employers to contribute to that tax free.