It is nothing more than a workplace savings plan known as working Americansu2022 most common way to save for retirement. If the plan allows Roth deferrals, it is the most efficient way for a worker to save in 2022. especially if married and family gross income is less than $101,000 because of the $24,000 standard deduction, the marginal rate for federal tax is only 12% at taxable income up to $77,000 (rounded). The same results exist for single workers, but at 1/2 the rates above or gross income of just short of $51,000. In a Roth 401(k), earnings and distributions are never taxed.Workers with higher incomes and itemizing expenses may still only be in the 12% federal marginal bracket so get a good CPA tax advisor of CFP to figure it all out.For most workers, the traditional way to save has been with pre-tax deferrals but in 2022. they should rethink this strategy because a married couple filing jointly doesnu2019t leave the 24% federal bracket until taxable income exceeds $315,000. Add back the $24,000 standard deduction and you are talking $339,000.The criticism about 401(k) plans in the past has been high fees and limited investment choices. That is mostly a myth now except for small plans, those with less than 100 participants and/or less than $3,000,000 in plan assets. It is worth noting that since July 1st, 2022. service provider fee disclosure regulations issued by the Department of Labor have put the burden squarely on plan service providers, not plan committees, to be transparent as to the services provided, whether they are reasonable for the cost, and to acknowledge if they are acting as a plan fiduciary.Fees come in multiple types, namely, record keeping and third party administration fees, custodial fees if not wrapped into the record keeping fees, investment and fiduciary advisor fees, and possibly administrative trustee fees. In the past, ERISA lawyers charged document fees too but today for most plans, there are simple prototype plans which can be adopted for a small fee and generally provided by the record keeper.The only folks calling 401(k) plans a failure are generally TV personalities talking their own book or very left leaning socialists who want the govu2019t to take over the private retirement system and thereby ruin it just like Obamacare, Medicare, the VA anything else the federal govu2019t tries to manage.