[Always Right]

It provides an incentive to place money in stocks and bonds when there might be no good reason to do so other than the tax break.

401K's provide real incentives to save money for retirement. There is no additional incentive to how the money is invested. There is nothing 'artificial' here, except maybe your perception of reality.

[AdamSelene235]

401K's provide real incentives to save money for retirement. There is no additional incentive to how the money is invested.

I see, so I am free to spend my 401K money, tax free as I see fit?