How do I know if I'm accredited?

[Lamont Marable]

Can you include your 401k into your assets column to be considered accredited?

I have someone that makes 100k and has 300k in their 401k that wants to invest.  

Thanks BP.

[Chris Reel]

Hey Lamont! 

Great technical question - one I've gotten in different ways a few different times. 

A bit of background... The SEC defines an accredited investor (who is a person) as someone with an annual income from the past 2 years at $200,000 individually or $300,000 if they are investing with a spouse. 

The alternative way a person can be categorized as accredited is if they have a net worth of $1million or more (excluding the value of their primary residence). 

What you've got going on seems like a bit of a hybrid. The $300k 401K would likely be considered part of their net worth and not part of their annual income. Plus, factor in that the $200k needs to be made for 2 years prior to them being accredited by way of their income. 

I'd say that the person you are referring to is not an accredited investor; however, there are other securities exemptions that don't address the accredited/non-accredited dynamic for investors that may be worth looking into. 

Best of luck! 
Chris 

INSERT FAMOUS DISCLAIMER HERE: This answer is for educational purposes only and is not and shall not be construed as legal advice. This answer does not create an attorney-client relationship.