Only compensation can be used to fund an IRA. Generally, compensation is what you earn from working.
See - https://www.irs.gov/publications/p590a#en_US_2020_publink1000230364
Compensation doesn’t include any of the following items.
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Earnings and profits from property, such as rental income, interest income, and dividend income.
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Pension or annuity income.
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Deferred compensation received (compensation payments postponed from a past year).
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Income from a partnership for which you don’t provide services that are a material income-producing factor.
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Conservation Reserve Program (CRP) payments reported on Schedule SE (Form 1040), line 1b.
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Any amounts (other than combat pay) you exclude from income, such as foreign earned income and housing costs.
