What Is Accredited Investor Status?

Accredited investor status is a US regulatory category that lets you participate in private offerings that are not registered with the SEC.

The thresholds

An individual generally qualifies by meeting any one of these tests:

• Income above $200,000 individually (or $300,000 jointly) for the last two years, with the same expected this year

• Net worth above $1 million excluding your primary residence

• Holding certain professional licenses, such as Series 7, 65 or 82

What it does not mean

Accreditation is a wealth test, not a skill test. Private offerings carry less mandated disclosure, so diligence responsibility shifts to you.