ordinary income

American  

noun

1. taxable income, as salary and wages, other than capital gains.

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Example Sentences

That pride can turn to dread as you ponder a future of RMDs where you must withdraw money that you’d prefer to leave untouched — and pay federal tax on that money at ordinary income rates.

From MarketWatch

When converting the money, the sum counts as ordinary income and the owner has to pay tax on the switched amount.

From MarketWatch

Because Roth conversions are taxed as ordinary income, this could mean a large tax bill if you do your conversion all at once.

From The Wall Street Journal

Hardship withdrawals are taxed as ordinary income, and the employee pays a 10% penalty if they’re younger than age 59½.

From MarketWatch

Ordinary income tax applies to withdrawals, and many assume they will be in lower tax brackets by the time they are retired and taking money out of the accounts.

From The Wall Street Journal