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 parent or guardian can open one for a child of any age. However, the person whose name is on the account must have earned income — money from a job, self-employment, or modeling work — in the year they want to contribute. You cannot contribute to a Roth IRA using investment returns, gifts, or allowance.
The earned income requirement is the real gate. A 10-year-old can have a Roth IRA, but only if they earned money that year. A teenager with a summer job can contribute up to the amount they earned. An adult with no job cannot contribute, no matter their age.
Once you turn 59½, you can withdraw your contributions and earnings tax-free, as long as the account has been open for at least five years. Before that age, you can always withdraw your contributions without penalty, but earnings come out with taxes and a 10% penalty in most cases.
Key Takeaways
- A Roth IRA can be opened for someone of any age, including children, as long as a parent or guardian manages it.
- You must have earned income in the year you contribute — the amount you contribute cannot exceed what you earned that year.
- For 2024, the contribution limit is $7,000 per year for adults under 50, or $8,000 if you are 50 or older (limits vary by year).
- Withdrawals before age 59½ are taxed on earnings and subject to a 10% penalty, but you can always withdraw your contributions without penalty.
- A custodial Roth IRA for a minor works the same way as an adult account, except the parent or guardian controls it until the child reaches the age of majority.
Roth IRAs for children and teenagers
A parent or guardian opens a custodial Roth IRA in the child's name. The adult controls the account and makes investment decisions until the child reaches the age of majority in their state — usually 18 or 21. The child's Social Security number goes on the account, and the earnings grow tax-free.
The child must have earned income. Common sources include a part-time job, babysitting, lawn care, or modeling. Self-employment income counts. Allowance, gifts, and investment returns do not. If a 14-year-old earned $2,000 from a summer job, they can contribute up to $2,000 to their Roth IRA that year.
Many custodial accounts are opened at brokerages like Fidelity, Vanguard, or Charles Schwab. You will need the child's Social Security number, proof of their earned income (a W-2 or tax return showing self-employment income), and your own identification. The process takes a few days to a week.
Earned income requirements and how they work
The IRS defines earned income narrowly. It includes wages from a job, net self-employment income, and modeling or acting income. It does not include interest, dividends, rental income, or money from investments. It does not include gifts or allowance, even if a parent says it is "payment" for chores.
If you are self-employed — running a small business or freelancing — your earned income is your net profit after business expenses. If you earned $5,000 in freelance work but spent $1,500 on supplies, your earned income is $3,500, and that is your contribution limit.
Your contribution cannot exceed your earned income for that year. If you earned $1,200 in 2024, you can contribute at most $1,200 to your Roth IRA for 2024, even if the annual limit is higher. If you earned nothing, you cannot contribute.
Annual contribution limits by age
| Age | 2024 Contribution Limit | Catch-Up Allowed |
|---|---|---|
| Under 50 | $7,000 | No |
| 50 and older | $8,000 | Yes, additional $1,000 |
These limits apply only if you have enough earned income. If you earned $3,000, you can contribute $3,000 regardless of age. The limits change most years — the IRS adjusts them for inflation. Check the current year's limit before you contribute.
The catch-up contribution of an extra $1,000 per year starts at age 50. This is meant to help people save more in their final working years. You must still have earned income to use it.
Income limits for Roth IRA contributions
Roth IRAs have income phase-out limits that reduce or eliminate your ability to contribute if you earn above a certain amount. These limits depend on your filing status and change each year. For 2024, single filers begin to phase out at $146,000 and cannot contribute at $161,000. Married couples filing jointly phase out starting at $230,000 and cannot contribute at $240,000.
These limits apply to your modified adjusted gross income (MAGI), not your earned income. MAGI is roughly your total income with some adjustments. If you are over the limit, you cannot contribute to a Roth IRA directly, though you may be able to use a backdoor Roth strategy (a more complex maneuver that requires separate research).
If you are under the income limit, the earned income requirement still applies — you must have earned income to contribute, and you cannot contribute more than you earned.
Opening a Roth IRA: what you need
To open a Roth IRA, you need a Social Security number, proof of identity (a driver's license or passport), and proof of earned income. For an employee, this is usually a recent pay stub or W-2. For self-employed people, it is a tax return or business records showing net income.
You also need to choose a financial institution. Common options are Fidelity, Vanguard, Charles Schwab, E-Trade, and many banks. Each has different investment options, fees, and minimum balances. Some have no minimum; others require $500 or $1,000 to start. Compare a few before you choose.
Opening an account online usually takes 10 to 15 minutes. You provide your personal information, Social Security number, and banking details (if you want to fund it by transfer). The account is typically active within a few business days. You can then invest the money in stocks, bonds, mutual funds, or target-date funds, depending on what the institution offers.
Frequently Asked Questions
Can a 16-year-old open a Roth IRA on their own?
No. A minor must have a parent or guardian open a custodial account in their name. The adult controls the account until the child reaches the age of majority. Once the child turns 18 or 21 (depending on state law), they can take control of the account themselves.
What if I earned money but do not have a W-2 or tax return yet?
You can contribute based on your earned income even before you file taxes. Bring documentation of what you earned — a pay stub, a letter from your employer, or business records showing income. The financial institution may ask you to confirm the amount later, but you do not have to wait for a tax return to open the account and contribute.
Can I contribute to a Roth IRA if I am retired?
Only if you have earned income. If you are retired and no longer working, you cannot contribute to a Roth IRA. If you are retired but still earn money from a part-time job, consulting, or self-employment, you can contribute up to the amount you earned that year.
What happens if I contribute more than I earned?
The IRS will penalize you. You will owe a 6% excise tax on the excess contribution for each year it stays in the account. You should withdraw the excess and any earnings on it as soon as you realize the mistake. File an amended tax return to correct it. The sooner you fix it, the less penalty you pay.
Can I move money from a regular savings account into a Roth IRA?
No. You can only fund a Roth IRA with earned income. If you have savings, you can use that money to live on while you contribute your earned income to the Roth IRA, but the contribution itself must come from income you earned that year.