You can open a Roth IRA at any age, but you must have earned income in that tax year to contribute to it

There is no minimum age to open a Roth IRA account itself. A financial institution cannot turn you away because you are too young. However, the IRS does not allow you to put money into a Roth IRA unless you earned income—from a job, self-employment, or certain other sources—in the same year you want to contribute.

This distinction matters. A child can have a Roth IRA opened in their name at age 8, 10, or 12. But they cannot fund it unless they had taxable income that year. A teenager working a summer job can contribute up to their total earned income for the year (or the annual contribution limit, whichever is smaller). A retiree with no wages can open an account but cannot add money to it.

Key Takeaways

  • You can open a Roth IRA at any age, but you must have earned income in that tax year to contribute money to it.
  • A parent or guardian can open and manage a Roth IRA for a minor, and the minor's own job income is what funds it.
  • If you have no earned income in a given year, you cannot contribute to a Roth IRA that year, even if you already own one.
  • The annual contribution limit for 2024 is $7,000 for most people under 50, but you cannot contribute more than your total earned income for the year.

What counts as earned income for Roth IRA purposes

The IRS defines earned income narrowly. It includes wages from a job (W-2 income), net self-employment income, and taxable alimony or spousal support. It does not include investment returns, rental income, Social Security, pensions, or money from parents or relatives.

For a minor with a job, earned income is straightforward: it is the wages shown on their W-2 or 1099 form. For a self-employed person, it is the net profit after business expenses. The key is that the income must be reported to the IRS on a tax return or be taxable income in the eyes of the IRS.

If you earned $3,500 in a year, you can contribute up to $3,500 to a Roth IRA that year, even if the annual limit is higher. If you earned $0, you cannot contribute anything, regardless of your age or how much money you have in the bank.

How a parent can open a Roth IRA for a child

A parent or guardian can open a custodial Roth IRA for a minor. The account is in the child's name, but the parent controls it until the child reaches the age of majority (usually 18 or 21, depending on state law and the financial institution). The child's earned income is what funds it.

Many families use this strategy when a child has a job—babysitting, lawn care, retail work, or a formal W-2 position. The parent opens the account at a brokerage or bank, deposits money equal to the child's earned income (up to the annual limit), and the money grows tax-free. When the child turns 18 or 21, control transfers to them.

The financial institution handling the custodial account will have its own rules about the minimum age at which a child can take control. Ask before opening the account if this matters to your situation.

No upper age limit for opening or contributing

There is no maximum age to open a Roth IRA or to contribute to one. A 70-year-old, 85-year-old, or 95-year-old can open a Roth IRA if they have earned income that year. A person who retires at 62 but takes a part-time consulting job at 68 can open a Roth IRA and contribute based on that consulting income.

This is different from a traditional IRA, which has a deadline: you cannot contribute to a traditional IRA after you turn 73 (as of 2023, under current law). Roth IRAs have no such deadline. The only requirement is earned income.

What happens if you open an account but have no income that year

You can open a Roth IRA and leave it empty. Many people do this to establish the account early, even if they do not fund it immediately. Once the account exists, you can contribute in future years when you have earned income.

If you contribute money to a Roth IRA in a year when you had no earned income, the IRS will treat the excess contribution as a violation. You will owe a 6% penalty tax on the excess amount each year it remains in the account, unless you withdraw it by the tax filing deadline (including extensions). To avoid this, do not contribute more than your earned income for the year.

Roth IRA contribution limits by age and income

For 2024, the annual contribution limit is $7,000 if you are under 50. If you are 50 or older, you can contribute an additional $1,000 as a "catch-up" contribution, for a total of $8,000. These limits apply regardless of how old you are when you open the account.

Your actual contribution is capped at whichever is smaller: the annual limit or your total earned income for the year. If you earned $4,000, you can contribute $4,000, not $7,000. If you earned $10,000, you can contribute $7,000 (or $8,000 if you are 50+).

These limits change periodically. Check the IRS website or your financial institution for the current year's limit before you contribute.

Income phase-out rules for high earners

Even if you have earned income, you cannot contribute to a Roth IRA if your modified adjusted gross income (MAGI) exceeds a certain threshold. The threshold depends on your filing status and changes each year.

For 2024, if you file as single, the phase-out range is roughly $146,000 to $161,000 MAGI. If you file as married filing jointly, it is roughly $230,000 to $240,000. If your income falls within the range, you can contribute a reduced amount. If your income exceeds the upper limit, you cannot contribute at all that year.

This rule applies to everyone, regardless of age. A 25-year-old and a 65-year-old with the same income face the same phase-out limits. If your income is too high, a backdoor Roth conversion may be an option, but that is a separate strategy beyond the scope of opening a basic account.

Frequently Asked Questions

Can a 16-year-old open a Roth IRA?

Yes, if they have earned income. A 16-year-old working at a restaurant or retail store can open a Roth IRA and contribute up to their W-2 wages for that year. A parent or guardian can help open a custodial account if the teen is not yet an adult in their state.

What if I opened a Roth IRA but did not contribute anything—do I have to close it?

No. An empty Roth IRA costs nothing to maintain at most financial institutions. You can leave it open and fund it in a future year when you have earned income. Some institutions charge a small annual fee if the balance is below a certain amount, so check your account agreement.

Can I contribute to a Roth IRA if I am retired and have no job income?

Not unless you have earned income that year. Retirement income, Social Security, investment gains, and pensions do not count. If you take a part-time job or have self-employment income in retirement, you can contribute based on that income.

Does my spouse's income count toward my Roth IRA contribution?

Only if you file taxes as married filing jointly and your spouse has earned income. In that case, you can each contribute up to the lesser of your individual earned income or the annual limit. Your spouse's income does not increase your own contribution room.

What if I contributed too much to my Roth IRA by accident?

Withdraw the excess amount by your tax filing deadline (including extensions). The withdrawal itself is not taxed, but you owe a 6% penalty tax on the excess for each year it stayed in the account. Report the withdrawal on Form 8606 when you file your taxes.