Skip to main content
Retirement Planning

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

401(k) Plan

Understand the meaning and definition of 401(k) Plan in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store

Open Free Demat Account!

Join our 3.8 Cr+ happy customers
+91