What Is the Minimum Age Requirement to Start a Roth IRA?

There is no age requirement to open a Roth IRA. Opening a Roth IRA as soon as possible for a child allows contributions during childhood an extra 10-15 years to grow tax free. 

Parents can open a Roth IRA for their child as soon as the child is able to earn income. Roth IRAs allow contributions from compensation (earned income) only. Compensation includes wages, salaries, tips, commissions and self-employment income. Gifts and interest from investments are not considered compensation. 

Parents who own businesses can employ their children, and contribute the wages to a Roth IRA on their child's behalf. However, parents must pay their children a prevailing wage for the work that is performed, and the child must actually perform the work. The child cannot contribute more than his total gross income in any year, and is subject to the maximum contribution limits.

Roth IRAs are more effective the longer they can work. Individuals who open Roth IRAs as soon as possible benefit most from both tax advantages and the Roth IRA's flexibility for life occurrences. Principal withdrawals are allowed at anytime for higher education costs and first home purchases. 


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