TERMS TO KNOW
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Earned income – salary, wages, or commissions; but not income from investments, unemployment benefits, and similar
Gross income – a person's income before taxes or other deductions Nonprofit organization – an organization that uses its surplus to fulfill its purpose instead of distributing the surplus to its owners or members Pretax contribution – contribution made before federal and/for state taxes are deducted from earnings Rollover – withdrawal of the money from one qualified plan and placing it into another plan Vesting – the right of a participant in a retirement plan to retain part or all of the benefits | |