Custodial Roth IRA
How a custodial Roth IRA works for a minor with a job: the earned income rule, the 2026 limit, funding it, and a calculator for tax-free growth.
Custodial Roth IRA calculator
Custodial Roth IRA rules
A minor can have a Roth IRA, opened and managed by a parent or guardian as custodian until the child reaches adulthood under state law. The child must have earned income (wages, or self-employment such as babysitting or lawn mowing with records), and contributions can't exceed that income or the 2026 IRA limit of $7,500, whichever is less. Anyone can fund the contribution (for example a parent matching the child's pay), as long as it doesn't exceed the child's earnings.
Why it's powerful
Decades of tax-free compounding. Contributions (not earnings) can be withdrawn any time without tax or penalty, and a child with earnings below the standard deduction usually pays no income tax on them, so the money goes in tax-free and comes out tax-free in retirement. Keep pay stubs or a log of self-employment income in case the IRS asks.
Common questions
Can a child have a Roth IRA?
Yes, if the child has earned income; a parent opens a custodial Roth IRA.
How much can a minor put in a Roth IRA in 2026?
The lesser of their earned income or $7,500.
Can parents fund a child's Roth IRA?
Yes, up to the child's earned income for the year.
Sources
More retirement calculators: 403b Plan · 457 Account · How Much Do I Need to Retire · Long Term Care Insurance
Related
General information, not financial, tax or legal advice. Check important numbers with the official source before acting on them.