House Democrats Contemplate Abolishing 401(k) Tax Breaks | workforce.com Ick. "Under Ghilarducciâs plan, all workers would receive a $600 annual inflation-adjusted subsidy from the U.S. government but would be required to invest 5 percent of their pay into a guaranteed retirement account administered by the Social Security Administration. The money in turn would be invested in special government bonds that would pay 3 percent a year, adjusted for inflation" 401Ks would basically go away as the matching would go away due to loss of tax breaks and if you read the BOLD, everyone would be REQUIRED to "invest" 5% of their income at 3%. Why ? "I want to spend our nationâs dollar for retirement security better. Everybody would now be coveredâ if the plan were adopted, Ghilarducci said." Aaargh. "Our nation's dollar" ? No that's our worker's dollar. "Everybody would be covered" ? Since when is saving MY money for MY retirement becoming a new version of social security. F*cking assshole Democrats.