What Is the Minimum Age to Open a Roth IRA?
A child's eligibility for a Roth IRA isn't based on age. Discover what makes a minor eligible and how an adult can establish an account on their behalf.
A person can open a Roth IRA at any age, as the Internal Revenue Service (IRS) does not impose a minimum age for contributions. The determining factor is not age but the presence of earned income. For a minor to contribute, they must have taxable compensation from work and the account must be structured as a custodial account.
The Earned Income Requirement
The ability to contribute to a Roth IRA is directly tied to having earned income, which the IRS defines as taxable wages and earnings from performing a service. This includes money earned from a formal W-2 job, as well as net earnings from self-employment. For many minors, self-employment is a common source of income through activities like babysitting, mowing lawns, or tutoring. Money received as a gift or an allowance does not qualify as earned income and cannot be used to justify a contribution.
Contributions are limited to the lesser of their total earned income for that year or the maximum annual contribution limit set by the IRS, which is $7,000 for 2025 for individuals under 50. For example, if a teenager earns $3,000 from a summer job, their maximum contribution for that year is $3,000. If they earn $8,000, their contribution is capped at the $7,000 annual limit.
For self-employment income where a Form 1099 may not be issued, maintaining accurate records is a necessary step. These records should document the type of work performed, when it was completed, who the client was, and the amount paid. This documentation serves as the basis for substantiating the earned income used to fund the Roth IRA. An adult can make the contribution on the child’s behalf, but the amount must be supported by the child’s own earnings.
Opening a Custodial Roth IRA
Because individuals under the age of majority cannot legally enter into contracts, they cannot open an investment account on their own. The account must be established as a custodial Roth IRA, where the minor is the owner and an adult serves as the custodian who manages the account.
To open the account, the financial institution will require the minor’s full name, date of birth, and Social Security Number, and the custodian must provide their own identifying information. You will also need to show records of the minor’s earned income, such as a W-2 or self-employment logs, to validate contributions.
The custodian is responsible for opening the account with a brokerage firm or other financial institution. Once established, the custodian will direct the investment of the funds within the account, choosing assets that align with a long-term growth objective suitable for the child’s distant retirement horizon.
Managing and Transferring the Account
The custodian has a fiduciary responsibility to manage the account’s assets in the best interest of the minor. This involves making all investment decisions, such as buying and selling stocks, mutual funds, or other assets within the IRA. The funds in the account legally belong to the child and are intended for their benefit.
Once the minor reaches the age of majority, control of the Roth IRA must be transferred to them. This age is determined by state law and is typically 18 or 21. The transfer process is initiated by the custodian and involves contacting the financial institution to have the custodial designation removed from the account title.
After the transfer is complete, the account becomes a standard individual Roth IRA, and the child, now a legal adult, gains full and irrevocable control over the funds. They can then manage the investments, make contributions, and take withdrawals according to the normal Roth IRA rules.