You must be at least 18 years old to open a Roth IRA in your own name

A Roth IRA is a retirement account that lets you save money with after-tax dollars and withdraw it tax-free in retirement. The IRS does not set a maximum age for opening one, but you do need to be a legal adult. If you are under 18, a parent or guardian can open a custodial Roth IRA on your behalf, but you cannot sign the account documents yourself.

The real requirement is not age — it is earned income. You must have money from a job (W-2 wages, self-employment income, or certain other sources) in the same year you contribute. You cannot fund a Roth IRA with investment returns, gifts, or inheritance. A teenager with a summer job can open one; a 65-year-old with no job income cannot contribute that year, even if they have savings.

Key Takeaways

  • You must be at least 18 to open a Roth IRA yourself, but a parent can open a custodial account for a minor who has earned income.
  • The amount you can contribute each year is limited to the lesser of your total earned income or the annual contribution limit set by the IRS.
  • A teenager earning $3,000 from a job can contribute up to $3,000 to a Roth IRA that year, even if the annual limit is higher.
  • You can withdraw your contributions (not earnings) from a Roth IRA at any age without penalty, though earnings have age and holding-period rules.
  • There is no age limit for opening a Roth IRA, so you can start one at 18, 45, or 72 as long as you have earned income that year.

How custodial Roth IRAs work for minors

If you are under 18 and have earned income from a job, your parent or legal guardian can open a custodial Roth IRA for you. The account is in your name, but the adult controls it until you reach the age of majority in your state (usually 18, sometimes 21). The parent cannot use the money for themselves — it belongs to you, and the tax rules are the same as any other Roth IRA.

The contribution limit is still based on your earned income, not your parent's. If you earned $2,500 from a part-time job, you can contribute up to $2,500 to the custodial account that year. Your parent can contribute on your behalf, but the total cannot exceed what you earned. Many custodial accounts are opened at brokerages like Fidelity, Vanguard, and Charles Schwab, which all offer them.

Earned income requirements and contribution limits

The IRS sets an annual contribution limit for Roth IRAs that changes most years. For 2024, the limit is $7,000 for people under 50. However, you cannot contribute more than you earned that year. If you worked and made $4,000, your maximum contribution is $4,000, even though the annual limit is higher.

Earned income includes W-2 wages from an employer, net self-employment income (if you run a business), and certain other sources like modeling fees or royalties. It does not include investment income, rental income, or money from parents. If you are married and file jointly, your spouse's earned income can count toward your contribution limit, but only if you have little or no income yourself.

What happens when you turn 18

When you reach 18, you can take control of a custodial Roth IRA that was opened for you. The account does not automatically transfer — you and your parent will need to contact the brokerage and update the account registration. Some firms have a simple form; others require a notarized document. After the transfer, you control all decisions: contributions, withdrawals, and investments.

The money already in the account stays in the account. You do not have to move it or close it. You simply gain the legal right to manage it. If your parent contributed money on your behalf in previous years, that money is still yours and still grows tax-free.

Withdrawal rules for young account holders

One advantage of a Roth IRA is that you can withdraw your contributions (the money you put in) at any age without penalty or taxes. If you contributed $5,000 over two years and the account grew to $5,500, you can withdraw the $5,000 anytime. The $500 in earnings is different — it has stricter rules.

Earnings can only be withdrawn tax-free and penalty-free if you are at least 59½ and have held the account for at least five years. If you withdraw earnings before then, you owe income tax on them and a 10% early withdrawal penalty. There are a few exceptions (disability, first-time home purchase up to $10,000 lifetime), but they are narrow. For most young savers, the strategy is to leave earnings alone and only touch contributions if you need the money.

Opening a Roth IRA as a teenager

If you are 18 or older and have earned income, you can open a Roth IRA yourself at any major brokerage. You will need a Social Security number, proof of identity, and proof of your address. Most brokerages let you open an account online in 10 to 15 minutes. You can then fund it with money from your job and choose how to invest it — stocks, bonds, mutual funds, or target-date funds are common choices.

Starting a Roth IRA young is powerful because the money has decades to grow tax-free. A 20-year-old who contributes $7,000 per year for 45 years until retirement will have made $315,000 in contributions, but the account could be worth far more depending on investment returns. Even small early contributions compound significantly over time.

No upper age limit for opening a Roth IRA

There is no maximum age to open a Roth IRA. You can open one at 25, 55, or 75 — as long as you have earned income that year. A 70-year-old who is still working can open a Roth IRA and contribute to it. Unlike traditional IRAs, there is no required minimum distribution (RMD) during your lifetime, so the money can stay in the account and grow tax-free for as long as you live.

The trade-off is that you have less time for the money to compound. A 65-year-old opening a Roth IRA has only a few years until retirement, so the tax-free growth benefit is smaller. But the account still works the same way: contributions can be withdrawn anytime, and earnings grow tax-free if you follow the rules.

Frequently Asked Questions

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

Not on their own — they need a parent or guardian to open a custodial account. But if the 16-year-old has earned income from a job, the custodial Roth IRA works the same way as any other Roth IRA, and the contribution limit is based on what they earned.

What if I have no earned income but my parents want to give me money for retirement?

Your parents cannot contribute to your Roth IRA unless you have earned income. However, they could give you money to fund a regular savings account or a taxable investment account. If you get a job, even a small one, you can then open a Roth IRA and your parents can help you fund it.

Can I withdraw my contributions before retirement?

Yes. You can withdraw the money you contributed to a Roth IRA at any age without taxes or penalties. Withdrawing earnings is different — they are subject to taxes and a 10% penalty if you are under 59½, with limited exceptions.

Do I have to be a U.S. citizen to open a Roth IRA?

You must have a valid Social Security number or Individual Taxpayer Identification Number (ITIN) and earned income reported to the IRS. U.S. citizens, permanent residents, and some visa holders can open one. Check with your brokerage about your specific situation.

What is the difference between a Roth IRA and a custodial account?

A custodial account is a type of investment account a parent opens for a minor; a Roth IRA is a specific retirement account with tax benefits. A custodial Roth IRA is both — it is a Roth IRA held in custodial form until the minor turns 18.