Retired in 2014. Received a severance distribution in 2015. The severance amount was taxed and both FICA and Medicare were deducted. In Jan 2016 I will receive a W-2 for the distribution. I will receive no other W-2(no other earned income) for 2015. Other sources of income include pension and investment income. Since FICA was taken out is the severance money considered earned income? Will I be able to make a 2015 tax deductible IRA contribution? Age 58 ,married filing joint, total income less than 100K.

yes; As long as you, or you and your spouse assuming you are married and filing a joint tax return have taxable compensation to contribute, you can always put money aside in a traditional IRA before the tax year you reach 70 1/2 years of age. The ability to make tax-deductible contributions can be limited, depending on whether you or your spouse is covered by an employer retirement plan. You could still contribute using after-tax dollars. The IRS stipulates that individual retirement accounts be funded with earned income. The IRS classifies severance pay as earned income