If an individual takes K-1 distributions from the S-Corp, no W-2 income, would he even be eligible to make an IRA contribution based on this income?

Can't have your Kaye & Edith too.

NO. S Corp Dividends etc Distribution from K-1 not considered earned Income.

Must be on W-2 and pay FICA or use income to calculate S.E. Tax.to be considered earned income. The accountant shouold be able to determine what the individual's status is. I'm not an accountant.

The IRS may raise an eyebrow if dividend income from S-Corp and w-2 earnings k-1 income etc. are not appropriate for the type of business etc. Did the individual "Work" in the business or is he/she a silent investor type?