Definition. The amount of earnings, after paying dividends, which a corporation has not paid out to stockholders. The income is usually accumulated to be reinvested to the business. Also called undistributed net earnings and retained earnings.RL to this page: http://www.investorwords.com/19239/undistributed_net_income.html. Copyright © 2015 by WebFinance, Inc. ALL RIGHTS RESERVED. Reproduction of all or part of this glossary, in any format, without the written consent of WebFinance, Inc. is prohibited.