Level 15

Retirement tax questions

IRA contributions can only come from "compensation," generally income reported in box 1 of a W-2 (minus any amount in box 11) or net earnings from self employment (although there are a few other special-case sources of compensation).  Interest from any source is not compensation and does not support an IRA contribution.  For more details, see What is Compensation in IRS Pub 590-A: