With the elimination of the 401k (and I assume similar other types of plans), they can start going after all those 401k balances, probably...maybe offering to "manage" it for you.
Saving is racist, and it produces inequality of outcome because some people save and some don't. It is true that it is easier for higher income people to save; that will be the equity argument for removing incentives to save. Thrift savings plans will be replaced by a one size fits all plan that provides refundable tax credits to fund tax favored "savings" accounts for low income people -- just another income transfer system. Since you earn above the threshold, you will be allowed, out of your own pocket, to save the same amount in a tax favored plan. Your contributions will be capped at the welfare level, thus equalizing results.
> they can start going after all those 401k balances...
Yep, convert them into Illinois state bonds or something like that.
I think their goal is to eliminate the deferred taxation aspect of it.
They might not be able to get their hands on the tIRAs that retirees already have invested, but they can change the 401(k) plans going forward for current workers so that the money is taxed today.
Beyond that, I didn't spend the time digesting the scenario comparisons to figure it out.
-PJ