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 financial institution will let you set up the account at any age — even as a child. The real restriction is on contributions: you must have earned income from work in the year you want to contribute money.

Earned income means wages, salary, self-employment income, or other compensation you received for performing work. It does not include investment returns, allowances, gifts, or money from parents. If you have no earned income in a given year, you cannot contribute to a Roth IRA that year, regardless of your age.

If you are under 18, a parent or guardian must open and manage a custodial Roth IRA on your behalf. You cannot legally sign contracts or hold financial accounts in your own name until you reach the age of majority in your state (usually 18). The account belongs to you, but the adult controls it until you turn 18 or 21, depending on state law and the financial institution's rules.

Key Takeaways

  • You can open a Roth IRA at any age if a parent or guardian opens a custodial account for you.
  • You must have earned income from work to contribute money in any given year, no matter how old you are.
  • A parent or guardian manages the account until you reach the age of majority, typically 18.
  • Once you turn 18 and have earned income, you can open and manage your own Roth IRA independently.

How custodial Roth IRAs work for minors

A custodial Roth IRA is a regular Roth IRA with an adult trustee. The parent or guardian holds the account title and makes all decisions about investments and withdrawals until the minor reaches the age of majority. The minor's earned income is what determines how much can be contributed each year — not the parent's income.

Many financial institutions offer custodial Roth IRAs, though not all do. You will need to contact the institution directly to ask whether they support them and what paperwork is required. Typically you will need the minor's Social Security number, proof of earned income (like a W-2 or tax return), and identification for the custodian.

The contribution limit for a custodial Roth IRA is the same as for any Roth IRA: the lesser of your earned income for the year or the annual contribution limit set by the IRS. For example, if a 14-year-old earned $2,000 from a summer job and the annual limit is $7,000, they could contribute up to $2,000.

Earned income requirements at different ages

The type of earned income that counts varies by age. A child under 18 can earn money through a job, self-employment (like babysitting or lawn care), or modeling and acting work. Money from chores or an allowance does not count. A teenager with a W-2 job at a retail store or restaurant has clear earned income. A young person doing freelance work or running a small business must report that income on a tax return.

If you are self-employed, you must file a tax return showing your net self-employment income. The IRS uses your tax return to verify how much you earned. A parent cannot simply declare that their child earned money — there must be documentation, usually a W-2 or a filed tax return.

Once you turn 18, the rules do not change. You still need earned income to contribute. The difference is that you can now open and manage the account yourself without a custodian.

What happens when you turn 18

When you reach 18, you can take control of the custodial Roth IRA. The exact process depends on the financial institution. Some automatically transfer the account to your name once you provide proof of age. Others require you to sign new paperwork. Contact your institution to learn their specific procedure.

You do not have to move the money or close the account. You can keep it where it is and continue contributing and investing. The account history and all the money you contributed as a minor stays in the account and continues to grow tax-free.

If you want to move the account to a different financial institution after you turn 18, you can do a direct transfer (also called a rollover). This moves the money without triggering taxes or penalties. The new institution will handle most of the paperwork.

Income limits for Roth IRA contributions

Roth IRAs have income limits that determine whether you can contribute in a given year. These limits apply to everyone, regardless of age. If your modified adjusted gross income (MAGI) exceeds the limit for your filing status, you cannot contribute the full amount — or cannot contribute at all.

The income limits change each year and depend on whether you file as single, married filing jointly, or another status. For 2024, the limits are higher than in previous years, but they vary. You can find the current year's limits on the IRS website or by asking your financial institution.

For a minor with a custodial account, the income limit is based on the minor's income, not the parent's. A 16-year-old earning $3,000 from a job will have a much lower income than their parents, so the income limit is unlikely to affect them. However, a young adult filing their own return should check the limits before contributing.

Contribution limits by year

The annual contribution limit is set by the IRS and changes periodically. For 2024, the limit is $7,000 for most people under 50. This limit applies whether you are 8 years old or 47 years old. However, you cannot contribute more than your earned income for the year.

If you earned $2,500 in 2024 and the limit is $7,000, you can only contribute $2,500. If you earned $8,000, you can contribute up to $7,000 (the limit), not the full $8,000.

The IRS publishes updated limits each year, usually in October or November for the following year. Your financial institution will tell you the current limit when you open the account or ask about contributing.

Frequently Asked Questions

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

Yes, with a parent or guardian opening a custodial account. The 10-year-old must have earned income from work to contribute money. Without earned income, the account can exist but cannot receive contributions.

What if my child earned money but did not file a tax return?

Most financial institutions will ask for proof of earned income, usually a W-2 or a filed tax return. If your child earned money but did not file, you may need to file a return retroactively to document the income before the institution will process a contribution.

Can I contribute money to my child's Roth IRA instead of them contributing?

No. The contribution must come from the child's earned income. You can give your child money, and they can then contribute it, but the contribution itself must be funded by their earnings. The financial institution may ask where the money came from.

Does my teenager need a Social Security number to open a Roth IRA?

Yes. The financial institution needs a Social Security number to open any IRA account and report it to the IRS. If your teenager does not have one, you can apply for one through the Social Security Administration before opening the account.

What happens to the money if my child does not work the following year?

The money stays in the account and continues to grow tax-free. You simply cannot make new contributions that year because there is no earned income. Once your child has earned income again, contributions can resume.