1) in many cases investment options are limited to certain packages. These often suck major ass 2) in many cases there is a 1% + fee which absolutely obliterat

1) in many cases investment options are limited to certain packages. These often suck major ass 2) in many cases there is a 1% + fee which absolutely obliterates your returns over the long run 3) your entire principal + capital gains are taxed as income when you take distributions whereas for an investment outside of 401k your principal gets taxed when you pay income taxes and then capital gains are taxed at a long term rate if you hold long enough, which is way lower than income rate. E.g. you actually kinda get fleeced on taxes too 4) your money is held hostage under threat of 10% penalty for a withdrawal and you have to practically beg for it it is so obnoxious to withdraw. My 401k did like 4 % at a time when the s&p 500 did like 30. That's a straight up scam