How to Open a Custodial Roth IRA for Your Kid (Step by Step)

To open a custodial Roth IRA, confirm your child had earned income this year, then apply at a provider that offers custodial Roth IRAs, with you as custodian and your child as the owner. Fund it with up to $7,500 for 2026 or your child's earned income, whichever is less, and invest the cash. The application itself usually takes 10 to 15 minutes online.

New to the account? Start with what a custodial Roth IRA is and who can have one. Every limit and deadline is in custodial Roth IRA rules and contribution limits.

Step 1: Confirm your child has earned income

Your child needs earned income this year: W-2 wages, self-employment income, documented cash work such as babysitting, or paid work in a family business. Allowance, gifts and investment income don't count.

A child with no earned income can't contribute to a Roth IRA, custodial or not. If your teen just got a first paycheck, see your teen's first job.

Step 2: Gather what you need

• Your child's Social Security number and date of birth
• Your own ID, Social Security number and contact details, since you apply as custodian
• A record of your child's earned income: pay stubs, or a log of dates, work and amounts
• Details for the bank account you'll fund it from

Step 3: Find a provider that offers the account

Many large brokerages offer custodial Roth IRAs, but not every provider does. Some robo-advisors and kids' investing apps only offer custodial UTMA/UGMA accounts, which are a different account type with different tax rules.

When you compare providers, check for account fees, minimums to open, whether you can apply online, who may serve as custodian, and whether automatic contributions are available. If you already have accounts somewhere, check there first.

Step 4: Open the account

Look for "custodial Roth IRA," "Roth IRA for minors" or "Roth IRA for kids" on the provider's site. It's a separate application from both an adult Roth IRA and a custodial brokerage account. You enter yourself as custodian and your child as the account owner.

Step 5: Fund it, and time it right

Contribute up to whichever is less: your child's earned income for the year, or the annual limit ($7,500 for 2026). The dollars can come from you or a grandparent while your child keeps their pay.

Contributions for a tax year can be made until that return's filing deadline, usually mid-April of the next year. Many parents wait until the year's earnings are known, then contribute in one go. That makes it easy to stay under the cap.

Can you set up automatic contributions for a minor's Roth IRA?

Often, yes. Many providers that offer custodial Roth IRAs let you schedule recurring transfers from a linked bank account, and some can invest each deposit automatically. Check whether that's offered on the custodial version of the account, not only the adult one.

The catch is the earned-income cap. A teenager's pay can change through the year, and anything above what they earn is an excess contribution with a 6% IRS tax each year until it's fixed. So keep a running total. Setting the monthly amount below expected earnings, then topping up after year-end, keeps you inside the limit.

Step 6: Invest the money and keep the records

Cash sitting in the account isn't invested. Choosing the investments is a separate decision, and a fee-only planner can help with it.

File the earned-income records with your tax papers each year. Your child may need to file a return, for example with more than $400 of self-employment income. The rules reference lists the filing triggers.

Where MemoryBank fits

Once the account is open, MemoryBank can connect it alongside your child's other accounts and show them one kid-friendly dashboard, so they can see their Roth grow in the years before they take it over.

MemoryBank is not a brokerage. It cannot receive, keep or transfer securities. It doesn't recommend a provider or an investment. For tax questions, talk with a tax professional or financial advisor.

Frequently asked questions

How do I open a custodial Roth IRA for my child?

Confirm your child had earned income this year, then apply at a provider that offers custodial Roth IRAs, with you as custodian and your child as owner. You'll need both of your Social Security numbers. Fund it up to the lesser of their earned income or the annual limit ($7,500 for 2026), then invest the cash.

Can I open a custodial Roth IRA online?

Yes, at most providers that offer the account. The online application usually takes 10 to 15 minutes. A few providers still use a paper form for minors' accounts.

Can I set up automatic contributions to a custodial Roth IRA?

Many providers allow recurring transfers into a custodial Roth IRA, and some invest each deposit automatically. Keep the yearly total at or below your child's earned income, since anything over it is an excess contribution with a 6% tax each year until corrected.

What's the deadline to contribute for a given year?

The tax-filing deadline for that year's return, usually mid-April of the following year. So a summer job's earnings can still be matched the next spring.

Does the contribution have to come from my kid's own money?

No. A parent or grandparent can supply the dollars while the child keeps their pay. The total contributed can't exceed the child's earned income for the year.

Can I open a custodial Roth IRA through a kids' investing app?

Usually not. Many kids' investing apps and some robo-advisors only offer custodial UTMA/UGMA accounts, a different account type with different tax rules. Check that the provider offers a custodial Roth IRA by name.

What to do next

1. Add up your child's earned income so far this year.
2. Pick two or three providers and check that each offers a custodial Roth IRA.
3. Open the account, then decide between one contribution after year-end or a recurring amount below expected earnings.