Roth IRA for Kids

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If you want a tax-smart, flexible and impactful way to help a child invest for the future, consider opening a Roth IRA for kids. Roth IRAs are a type of individual retirement account that any adult can manage—parent, grandparent, aunt, uncle, family friend—on behalf of a minor making income.

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The IRS only has one stipulation for an individual to contribute to an IRA: you need to have earned income. That doesn’t mean money received as financial gifts for babies and kids, nor from money you earn from chores, mind you.

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When a minor has an investment account, it is usually in the name of the child’s parents or other guardian. These types of accounts go by the name “custodial account” or guardian accounts because the custodian makes decisions on behalf of the beneficiary. In this case, a minor child.

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The custodial IRA is a unique type of account that parents can open for their children. In fact, this type of IRA doesn’t get offered by any financial institution which offers an IRA. These investment accounts are more niche than a standard IRA, allowing minors to start investing in their retirement.

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What is a Custodial Roth IRA and What are the Rules?

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How to Open a Custodial Roth IRA for Kids

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Swipe up for more ABOUT Roth IRA for Kids

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Roth IRA for Kids

If you want a tax-smart, flexible and impactful way to help a child invest for the future, consider opening a Roth IRA for kids. Roth IRAs are a type of individual retirement account that any adult can manage—parent, grandparent, aunt, uncle, family friend—on behalf of a minor making income.

The IRS only has one stipulation for an individual to contribute to an IRA: you need to have earned income. That doesn’t mean money received as financial gifts for babies and kids, nor from money you earn from chores, mind you.

What is an IRA?

When a minor has an investment account, it is usually in the name of the child’s parents or other guardian. These types of accounts go by the name “custodial account” or guardian accounts because the custodian makes decisions on behalf of the beneficiary. In this case, a minor child.

What is a Custodial Account?

What is a Custodial Roth IRA and What are the Rules?

What is a Custodial Roth IRA and What are the Rules?

How to Open a Custodial Roth IRA for Kids

Swipe up for more ABOUT Roth IRA for Kids

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