Can I fund an IRA with third party sick pay or does it need to be earned income?

[IreneS]

You can fund the IRA with third party sick pay, but you do need earned income in order to contribute.

You are eligible to contribute to an IRA as long as you have earned income and are under age 70-1/2.  For 2016 the most that can be contributed to a traditional IRA is the smaller of:

• $5,500 ($6,500 if you are age 50 or older); or
• your taxable compensation.