Are you considered a millionaire if you don't have access to the money? (rates, California)

[BigCityDreamer]

Originally Posted by unknown00

but you don't have access to it. One can easily pass away without ever having access, even if they wanted to, touch that money

The sole reason anybody has a 401k is to save and invest money with an employer match during the course of their career so they will have access to it during retirement.

Your implication is that it is irrelevant or some kind of an "accident."

[beachmouse]

Pennsylvania's inheritance tax ranges from 4.5% to 15% from pretty much dollar one unless it's to a spouse or child under age 21.

[Submariner]

IMHO, 'Millionaire' is a term describing your Net Worth. Regardless of taxes, or liquid ability.

If your Net Worth [Assets - Liabilities] is greater than $1Million then you are one.

[beachmouse]

There are many ways to lockbox money for better gain. Are you still a millionaire if you've got 100K of it tied up in a two year CD? Yes, you are.

[Lillie767]

Of course the 401(k) is accessible. There may be exit fees and taxes but you can get the money. The government has a call for a percentage of your account balance. The exact amount is currently unknown but can be estimated and will change.

[k7baixo]

Remember the term, “house rich, cash poor”? More than a few seniors can be described this way.

[unknown00]

Find it interesting people are posting about tax/liabilities/etc. The whole point of this point is to debate the accessibility of money and whether inaccessible money counts. I should of said in first post - ignore all tax and assume 0 debt/liabilities

[swopoe]

We just passed $1 million in my husband’s 401K. It feels strange to say we would be millionaires, because it doesn’t feel like we are.

[asufan]

Originally Posted by swopoe

We just passed $1 million in my husband’s 401K. It feels strange to say we would be millionaires, because it doesn’t feel like we are.

That's because when we were kids (I'm mid 40s), the term millionaire carried more weight. Think limo or Rolls Royce, private jets and chef's. Now a million dollars is easily attainable by educated people or those with long term upper middle class incomes.

[Stockyman]

Imagine how many new millionaires there are daily due to holding enough Crypto currencies. Of course it could come crashing down depending on what they hold but never has it been easier to become one and faster to lose it all.