401k a bad thing?

Mr. Robert Kiyosaki in his article "Work Hard, Earn Less?" puts forward some interesting thoughts on taxes and your 401k. Something I haven't thought about before, that is.

Mr. Kiyosaki points out the following:

Today, workers who save money and invest in a 401(k) plan are the highest taxed people in America. Now, I can hear some of you asking, "Isn't saving money and investing in a 401(k) having your money work for you?"No -- at least not according to the IRS. A worker's pay is taxed at the highest tax rate possible. So are your savings and income from your 401(k). In most cases, money goes into a 401(k) tax-deferred but comes out as highly taxed ordinary income.One of the reasons the rich are getting richer is because they have more control over our number one expense: Taxes.

The safety net the 401k provides is nice and the upfront tax break from contributions is also a plus. But it may not be the best bet in the long run.