Minds → Securities & Investing → Under 17 CFR 230.501, what conditions must an individual meet to qualify as an accredited investor under Regulation D? Answer in under 100 words.
US FederalSEC Regulation DUnder 17 CFR 230.501, what conditions must an individual meet to qualify as an accredited investor under Regulation D? Answer in under 100 words.
Under 17 CFR 230.501, an individual qualifies as an accredited investor by meeting financial thresholds: individual income exceeding $200,000 (or $300,000 joint with spouse/spousal equivalent) in each of the two most recent years with a reasonable expectation of the same in the current year, or net worth exceeding $1,000,000 (excluding primary residence). Alternatively, holding specified professional certifications, being a knowledgeable employee, or being a director/executive officer of the issuer qualifies. (As of the current regulation.)
Last verified: 2026-08-26 · Sources checked: 1/1 resolving · Next scheduled review: 2026-11-24
Details / How it works
Under 17 CFR 230.501, an accredited investor includes any natural person who meets certain criteria at the time of sale. The issuer must reasonably believe the person qualifies.
Numbers & thresholds
| Criterion | Threshold |
|---|---|
| Individual income | >$200,000 in each of two most recent years |
| Joint income | >$300,000 in each of two most recent years |
| Net worth | >$1,000,000 (excluding primary residence) |
Exceptions & edge cases
Net worth calculation excludes primary residence and certain related indebtedness. Professional certifications, knowledgeable employee status, and issuer officer/director roles also qualify.
Sources
- [1]U.S. National Archives, Electronic Code of Federal Regulations — 17 CFR 230.501 — Definitions and terms used in Regulation D. · as of 2026-08-26
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