7 votes

What is the earliest age that an American may open a Roth IRA account?

My two boys are interested in having what their parents have and they want to get an early start since we got started late.

2 comments

  1. [2]
    Keegan
    Link
    It seems like there isn't really an earliest age, and it all depends on when they are able to start contributing to it. Of course, contacting your bank is the best thing to do with this, as there...

    It seems like there isn't really an earliest age, and it all depends on when they are able to start contributing to it. Of course, contacting your bank is the best thing to do with this, as there may be better options than a Roth IRA out there.

    By law, banks, brokers, and investment companies require custodial or guardian accounts if your child is a minor (under age 18 in most states; under age 19 and 21 in others). As the custodian, you (the adult) control the assets in the IRA, making all investment decisions, until your child reaches majority age, at which point they are turned over to them.

    Since this mentions accounts for minors and it being turned over once they are of age, it seems like there is no age minimum.

    Note:

    the IRS doesn’t care who makes the contribution as long as it does not exceed your child’s earned income for the year. If Joe Jr. made $2,000 from his lemonade stand one summer, $2,000 is all you or he [or a combination thereof] can invest in the IRA. Since the contribution is made to your child’s IRA, your child—not you—receives any tax deduction.

    https://www.investopedia.com/articles/personal-finance/110713/benefits-starting-ira-your-child.asp

    6 votes