Retirement PlanningLump Sum Distribution Excess Contribution Individual Retirement Account (IRA) Dollar Cost Averaging* Investment Portfolio Definition FDIC
Earned Income
Income is a crucial concept in the world of finance. It refers to the financial return one receives for their physical or mental efforts and activities. This encompasses both wages or salary earned from employment, as well as net earnings from self-employment. However, it is important to note that passive income, such as interest, dividends, or capital gains, are not considered as part of one's income. This is a crucial distinction to keep in mind, especially when it comes to contributing to a traditional or Roth IRA. To be eligible for these retirement accounts, there must be earned income present. This means that either you or your spouse must have received income from active participation in a job or business.
Related terms
Understand the meaning and definition of Lump Sum Distribution in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Excess Contribution in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Individual Retirement Account (IRA) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Dollar Cost Averaging* in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Investment Portfolio Definition in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of FDIC in the context of stock market, trading, and investments.
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