Am I an Accredited Investor?

Most people who ask this question already qualify. They just don’t know it, because the term sounds like something you apply for.

You don’t apply. There is no registry, no certificate, no government office that issues accredited investor status. It’s a definition in SEC Rule 501(a), and you either meet it on the day you invest or you don’t. That’s the whole mechanism.

Here are the four doors in.

Door 1: Income

You earned more than $200,000 individually — or $300,000 filing jointly with a spouse or spousal equivalent — in each of the two most recent calendar years, and you reasonably expect the same this year.

Two details trip people up. The two years must be consecutive and recent, not your two best years ever. And if you’re using the joint threshold, you have to use joint income for both years; you can’t mix an individual year with a joint year.

The forward-looking piece is a reasonable expectation, not a guarantee. If you’re mid-career with stable compensation, that’s straightforward. If last year included a one-time liquidity event you don’t expect to repeat, be honest about it — the expectation has to be reasonable on the facts you actually have.

Door 2: Net Worth

Your net worth exceeds $1,000,000, alone or together with a spouse, excluding the value of your primary residence.

The exclusion is doing a lot of work here. Your home doesn’t count toward the million. Neither does the mortgage against it count against you — unless the loan balance exceeds the home’s fair market value, or you took cash out within 60 days of investing, in which case the excess becomes a liability on your balance sheet. That 60-day rule exists specifically to stop people from manufacturing qualification by refinancing.

What does count: brokerage accounts, retirement accounts, IRAs and 401(k)s, business interests, investment real estate, cash, and vehicles.

Net worth is measured at the time you invest, not at year-end and not on your last tax return. If your position has moved materially in either direction, the current number governs.

Door 3: Professional License

Since the SEC’s 2020 amendments, you qualify if you hold a Series 7, Series 65, or Series 82 license in good standing — regardless of income or net worth.

This pathway is badly underused. A financial adviser or registered rep who hasn’t crossed the wealth thresholds is still accredited. The SEC framed the 2020 list as a starting point and left room to designate more credentials, but as of 2026 those three remain the only ones formally recognized. Bills in Congress would add more; none has become law.

You also qualify if you’re a knowledgeable employee of the private fund in question — a director, executive officer, or someone participating in its investment activities.

Door 4: Entity Status

If you’re investing through an entity rather than personally, the entity qualifies on its own terms:

• More than $5 million in assets, provided the entity wasn’t formed for the specific purpose of making this investment
• Every equity owner is individually accredited — the look-through route, common for small investment LLCs and family partnerships
• A family office with more than $5 million under management, not formed for the specific purpose of this investment, whose investment is directed by someone with the knowledge to evaluate it
• Certain institutions by category: banks, insurance companies, registered investment companies, business development companies, and qualifying employee benefit plans

The two disqualifiers to watch: an entity formed for the deal doesn’t get the $5 million test, and a single non-accredited member breaks the look-through.

One Step Further: Qualified Client

Accredited is the entry standard. A second, higher standard governs whether a registered adviser can charge you performance fees — and it moved this year.

As of June 29, 2026, a qualified client is someone with at least $1.4 million under management with the adviser, or a net worth above $2.7 million excluding primary residence. The prior figures were $1.1 million and $2.2 million.

This does not change what you can invest in. It changes who can charge you carry. If the vehicle you’re evaluating is managed by a registered adviser and includes a performance allocation, this is the number that governs.

Full comparison: Accredited vs Qualified Client

If You Qualify, What Then?

Qualifying is the beginning, not the end. The practical questions are what you can access, at what minimum, through what structure, and how you evaluate a sponsor you’ve never worked with.

How to Invest in Pre-IPO Companies (preipoinvestments.com)