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. A child, teenager, or adult can have one. The real requirement is not age—it is earned income. You must have money from work (wages, self-employment, modeling, acting, or similar) in the year you want to contribute. The IRS does not allow contributions from investment returns, gifts, or allowances unless those came from actual work.

A parent or guardian can open and manage the account for a minor. The child's Social Security number goes on the account, and the parent controls it until the child reaches the age of majority (usually 18 or 21, depending on your state). The child does not need to manage it themselves—they just need to have earned the money being contributed.

The amount you can contribute each year depends on how much earned income you had, not on your age. For 2024, the limit is $7,000 or your total earned income for the year, whichever is less. If a 14-year-old earned $3,000 from a summer job, they can contribute up to $3,000 to a Roth IRA. If they earned $10,000, they can contribute the full $7,000 limit.

Key Takeaways

  • You can open a Roth IRA at any age as long as you have earned income from work in that year.
  • A parent or guardian can open and manage the account for a minor child using the child's Social Security number.
  • Your yearly contribution limit is the smaller of $7,000 or your total earned income for that year.
  • Money from gifts, allowances, or investments does not count as earned income and cannot be contributed to a Roth IRA.
  • Starting a Roth IRA young means decades of tax-free growth before you withdraw the money in retirement.

How earned income is defined for Roth IRA purposes

The IRS has a specific definition of earned income. It includes W-2 wages from a job, net self-employment income (money from your own business after expenses), modeling or acting fees, and certain military combat pay. It does not include interest, dividends, rental income, or money from investments. It also does not include gifts from family members, even if they call it payment for chores.

If a young person works for a family business, the income counts—but the business must be real and the work must be documented. The IRS looks for a written record showing what the person did, when they did it, and what they were paid. A parent cannot simply hand a child $5,000 and call it wages; there needs to be evidence of actual work performed.

Self-employment income works the same way. A teenager who mows lawns, babysits, or sells items online has earned income. They report it on their tax return (or their parent's return if they are a dependent), and that amount becomes their contribution limit for the year.

Opening a Roth IRA for a minor

Most major financial institutions—banks, brokerages, and investment firms—offer custodial Roth IRAs for minors. The parent or legal guardian is the custodian and makes all decisions about where the money is invested and when contributions are made. The account is in the child's name and uses their Social Security number.

To open one, you will need the child's Social Security number, proof of identity for the parent or guardian, and proof of the child's identity (usually a birth certificate). Some firms also ask for proof of the child's earned income, such as a W-2 or a record of self-employment income. The process is similar to opening a regular Roth IRA, but the paperwork includes a custodian designation.

Once the account is open, the parent can choose how to invest the money—in stocks, bonds, mutual funds, or other options offered by the firm. The parent controls the account until the child reaches the age of majority. At that point, the account transfers to the child's full control, though the money stays in the Roth IRA and continues to grow tax-free.

Tax filing requirements when a minor has a Roth IRA

If a child has earned income, they may need to file a tax return even if their income is below the standard deduction. The rules depend on whether they are a dependent and how much they earned. A dependent with earned income must file if their gross income exceeds $14,600 for 2024 (the standard deduction for a dependent). A non-dependent must file if their gross income exceeds $14,600.

Filing a tax return is important because it creates an official record of earned income, which the IRS uses to verify Roth IRA contributions. If a child contributed $3,000 to a Roth IRA but did not file a return showing that income, the IRS could disallow the contribution and impose penalties. A parent should consult a tax professional to determine whether filing is required and to ensure the return is filed correctly.

The good news is that a child with only earned income and a Roth IRA contribution typically owes no federal income tax. Filing is still necessary to document the income, but the return will show zero tax owed.

Why starting young matters for Roth IRA growth

A Roth IRA opened at age 14 has 50+ years to grow before retirement. Because Roth IRAs allow tax-free withdrawals in retirement, the longer the money sits, the more it compounds without being taxed along the way. A $3,000 contribution at age 14, invested in a diversified fund, could grow to tens of thousands of dollars by age 65—all without paying taxes on the gains.

This is different from a regular savings account or a taxable investment account, where you pay taxes on interest and investment gains each year. In a Roth IRA, those gains are never taxed, as long as you follow the withdrawal rules (you must be at least 59½ and the account must be open for at least five years).

Starting early also builds the habit of saving. A teenager who contributes to a Roth IRA learns that setting money aside for the future is normal and possible, even on a modest income. That mindset often carries into adulthood and leads to stronger retirement savings overall.

Contribution limits and how they work for young earners

The annual contribution limit for a Roth IRA is $7,000 for 2024. However, you cannot contribute more than you earned that year. If a 16-year-old earned $2,500 from a part-time job, they can contribute up to $2,500—not the full $7,000. If they earned $10,000, they can contribute the full $7,000 limit.

The contribution limit applies to all IRAs combined. If a young person has both a Roth IRA and a traditional IRA (which is rare but possible), their total contributions to both accounts cannot exceed $7,000 in a single year. Most young people have only a Roth IRA, so this is not usually a concern.

Contributions must be made by the tax filing deadline for that year, usually April 15 of the following year. A parent can contribute to a child's Roth IRA using the child's earned income, as long as the contribution does not exceed what the child actually earned.

Withdrawal rules and early access

One of the main advantages of a Roth IRA is flexibility. You can withdraw your contributions (the money you put in) at any time, tax-free and penalty-free. If a 17-year-old contributed $2,000 and later needed that money, they could withdraw it without consequence. The earnings (the investment gains) are different—those are subject to taxes and penalties if withdrawn before age 59½, with some exceptions.

The exceptions include withdrawals for a first home purchase (up to $10,000 lifetime), certain education expenses, disability, or medical bills. These exceptions apply regardless of age, though the account must have been open for at least five years in most cases. A young person should understand these rules before contributing, so they know what happens if they need the money.

Because of this flexibility, a Roth IRA can serve as both a retirement account and an emergency fund for young people. The contributions are always accessible, while the earnings grow tax-free for retirement.

Frequently Asked Questions

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

Yes, if they have earned income. A 10-year-old who earns money from a legitimate job (such as babysitting or yard work) can have a custodial Roth IRA opened by a parent or guardian. The contribution limit is the amount they earned, up to $7,000 per year.

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

You should file a return to document the income, even if no tax is owed. The IRS uses tax returns to verify that Roth IRA contributions are backed by actual earned income. Without a return on file, the contribution could be disallowed and penalties may apply. A tax professional can help you file retroactively if needed.

Can I contribute to my child's Roth IRA using my own money?

No. The contribution must come from the child's earned income. You can give your child money to contribute, but the contribution itself must be tied to income they actually earned from work. The IRS requires this documentation to prevent people from using Roth IRAs as a way to shelter unearned money from taxes.

What happens to the Roth IRA when my child turns 18?

The account remains a Roth IRA, but control transfers from the custodian (parent or guardian) to the account owner (your child). The money stays invested and continues to grow tax-free. Your child can now make their own decisions about contributions and investments, though the account rules stay the same.

Is there a deadline to open a Roth IRA if my child earned money this year?

Contributions for a given year must be made by the tax filing deadline, usually April 15 of the following year. You can open the account anytime, but contributions for 2024 must be made by April 15, 2025. After that date, contributions for 2024 are no longer allowed.