What Age You Need To Be To Open a Roth IRA

You can open a Roth IRA at any age, but you must have earned income to contribute

There is no minimum age to open a Roth IRA account itself. A child, teenager, or adult can have one. The real requirement is that you — or the person whose name is on the account — must have earned income from work during that tax year. You cannot contribute money you received as a gift, allowance, or inheritance. You cannot contribute money from investments or savings. The contribution must come from wages, salary, self-employment income, or other money you earned by working.

If you have no earned income in a given year, you cannot make a Roth contribution that year, regardless of your age. If you are 14 and earned $2,000 from a summer job, you can contribute up to $2,000 to a Roth IRA. If you are 45 and earned nothing that year, you cannot contribute anything.

Key Takeaways

• A minor can open a Roth IRA if they have earned income from work, but a parent or guardian must open and manage a custodial account on their behalf.
• The amount you can contribute each year is limited to the lesser of your total earned income or the annual contribution limit set by the IRS, which changes yearly.
• Contributions to a Roth IRA come from after-tax money, so you pay income tax on the earnings before you contribute, not when you withdraw in retirement.
• Money withdrawn before age 59½ may be subject to taxes and penalties, with limited exceptions for first-time home purchases and education expenses.
• A custodial Roth IRA for a minor works the same way as an adult account, but the parent or guardian controls it until the child reaches the age of majority in their state.

How a custodial Roth IRA works for minors

If you are under 18 (or under 21 in some states), you cannot sign a legal contract, so you cannot open a Roth IRA in your own name. Instead, a parent or guardian opens a custodial Roth IRA with you as the beneficiary. The parent controls the account and makes all decisions about contributions and investments until you reach the age of majority in your state — usually 18, sometimes 21.

The account itself follows all the same Roth rules: contributions are made with after-tax money, earnings grow tax-free, and withdrawals in retirement are tax-free. The only difference is who holds the legal power to manage it. Once you turn 18 or 21, depending on your state, the account transfers to your control and becomes a regular Roth IRA.

You will need a Social Security number to open the account. Your parent will need their own Social Security number and identification. Most major brokerages — Fidelity, Vanguard, Charles Schwab, and others — offer custodial Roth IRAs, though some have minimum account sizes or require the parent to have an account with them as well.

Earned income requirements for minors

The IRS defines earned income narrowly. It includes W-2 wages from an employer, net self-employment income, and certain modeling or acting fees. It does not include allowance, gifts, investment returns, or money from a trust. It does not include babysitting or lawn-mowing paid in cash without a record — the IRS wants to see documented income.

A teenager working a part-time job, a summer job, or a job at a family business can have earned income. A child who does chores for their parents cannot, unless the parents run a business and the child is genuinely employed by that business at a reasonable wage. If your parents own a business and pay you a salary for real work, that counts. If they pay you $5,000 for mowing the lawn once, the IRS will likely disallow it.

The contribution limit for 2024 is $7,000 or your total earned income for the year, whichever is less. If you earned $3,000 from a job, you can contribute up to $3,000. If you earned $10,000, you can contribute up to $7,000. These limits change each year, and your parent should check the current limit before contributing.

Who manages the money while you are a minor

Your parent or guardian makes all investment decisions while the account is in their name. They choose where the money goes — into a money market fund, a target-date fund, individual stocks, bonds, or other investments offered by the brokerage. You may have input, but they have the legal authority to decide.

Your parent cannot withdraw the money for their own use. The account is yours, and the money must stay in the account or be used for your benefit. If your parent takes money out for themselves, they are committing a violation of the custodial agreement and may face tax penalties. The money belongs to you, not to them.

You should ask your parent to show you the account statements and explain the investments. Understanding how your money is invested teaches you about long-term saving and compound growth. Many parents use a custodial Roth as a teaching tool, letting their teenager see how contributions grow over decades.

What happens when you turn 18 or 21

When you reach the age of majority in your state, the custodial account automatically converts to a regular Roth IRA in your name. You now have full control. You can make your own investment decisions, add more contributions if you have earned income, or leave it alone. The brokerage will send you new account documents reflecting the change.

The money that was contributed while you were a minor stays in the account and continues to grow tax-free. You do not have to do anything to keep it there. If you want to move the account to a different brokerage, you can request a transfer, but you do not have to.

At this point, you are responsible for understanding the withdrawal rules. Money you contributed can be withdrawn at any time without penalty — that is one of the major benefits of a Roth. Earnings on those contributions cannot be withdrawn before age 59½ without paying taxes and a 10% penalty, with some exceptions for first-time home purchases, education expenses, and other may have access to events.

Common mistakes parents make with custodial Roths

The most common mistake is contributing more than the child's earned income. If your child earned $2,000 but you contribute $7,000, the IRS can disallow the excess and charge penalties. Keep records of your child's income — pay stubs, 1099 forms, or business records — to prove the contribution is valid.

Another mistake is treating the account as a way to shelter family money. Some parents want to put money in a custodial Roth to reduce their own taxable income or to set aside money for their child's college. A Roth is not a college savings account — it is a retirement account with strict withdrawal rules. If you need the money before your child is 59½, you may owe taxes and penalties.

A third mistake is forgetting to file the required tax forms. If your child has earned income, they may need to file a tax return even if no tax is owed. Roth contributions do not reduce your child's taxable income the way traditional IRA contributions do, so the tax filing requirement depends on the total income and type of income. Consult a tax professional if you are unsure.

Roth IRA contribution limits by year

The IRS sets annual contribution limits that change most years. The limit applies to all IRAs combined — if you have both a traditional IRA and a Roth IRA, your contributions to both cannot exceed the annual limit. For 2024, the limit is $7,000 for people under 50. For 2025, it remains $7,000. These limits are set by law and do not change unless Congress acts.

Your actual contribution is limited by your earned income. If you earned $3,000, you can contribute $3,000 even if the annual limit is $7,000. If you earned $10,000, you can contribute $7,000 because that is the annual limit. The limit is a ceiling, not a requirement — you can contribute less than the limit if you choose.

Frequently Asked Questions

Can a 10-year-old open a Roth IRA?

Yes, if they have earned income. A parent must open a custodial account on their behalf. The child's earned income must come from documented work — a job, self-employment, or a family business where they are genuinely employed. Allowance or gifts do not count.

What if my child earned income but we did not open a Roth yet?

You can open a custodial Roth IRA at any time during the year or up to the tax filing important date the following year (usually April 15). Contributions for a given tax year can be made until that important date. If your child earned $2,000 in 2024, you can contribute to a 2024 Roth until April 15, 2025.

Can I withdraw my child's Roth contributions to pay for college?

You can withdraw contributions (the money you put in) at any time without penalty. Earnings on those contributions cannot be withdrawn before age 59½ without taxes and penalties, though education expenses are one of the limited exceptions. A Roth is designed for retirement, not college savings, so consider a 529 plan or other college savings account instead.

What if my child has no income one year?

You cannot make a Roth contribution that year. The contribution must match earned income. If your child earned nothing, the contribution limit is zero. You can resume contributions in years when they have earned income.

Do I need to file taxes if my child only has Roth contributions?

Roth contributions do not reduce taxable income, so the filing requirement depends on your child's total income and type of income. If they earned $2,000 from a job and have no other income, they may not be required to file. Consult a tax professional or check IRS Publication 17 to determine if a return is required.