Yes....I realize that.
I am questioning the use of the term *tax-preferred* vs tax-deferred...which is what you just described.
I am guilty of not reading the article. I am not up to date on the employer side of things. Obviously, the employer gets some kind of tax break for making the contribution. Once they make the contribution, they no longer have control how the employee spends the money. That is why there is a penalty for using the funds for ineligible expenses.