Roth IRA for Kids

Tax-free growth for kids

Those building blocks your child used to love? Here's one they can love for a lifetime: potential tax-free growth.1 See how a Roth IRA for Kids could fuel your child's future.


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What is a Roth IRA for Kids?

A Roth IRA for Kids is a tax-advantaged retirement account opened for a child who has earned income.2 The account is managed by an adult (the custodian) and then transferred to the child at a certain age (typically between 18 and 25, depending on the state).


A smart head start

Time is on the child's side—a little saved today has a lifetime to potentially grow.


Tax-savvy

Roth IRA growth is federal tax-free and can be withdrawn tax-free in retirement.1


Emergency access

Contributions can be withdrawn without taxes or penalties, at any time.

Simple to qualify


To open and contribute to a Roth IRA for Kids, your child (under age 18) simply needs to earn income—whether it's as a babysitter, lifeguard, dog-walker, you name it.


Tip: If your child didn't receive a W-2 for the work, just keep a log of their income to validate your contributions, if asked.


Keep in mind: Filing a tax return for the child is NOT required if they earn less than the IRS standard deduction amount ($15,000 in 2025).

Easy to contribute

Each year, you can contribute up to 100% of the child's income, to a maximum of $7,000 for 2024 and 2025.


Example 1: If your child earns $1,000 mowing lawns, you could contribute $1,000.


Example 2: If your child earns $10,000 mowing lawns, you could contribute to the $7,000 limit.

Hassle-free ownership transfer


As the custodian, you'll manage and invest the IRA money until the child becomes an adult (age differs by state). We'll then assist you in transferring ownership to the newly minted adult.

Qualified withdrawals are tax-free1

Any potential earnings on investments will grow free of federal taxes in the IRA.

Once the account has been opened for 5 years, the money can then be withdrawn free from federal income tax and penalties as long as the account owner is age 59½.


If the money is needed earlier than 59½, other qualified, tax and penalty-free withdrawals include:


  • First-time home purchase (up to $10,000)
  • Disability
  • Death

Keep in mind: Contributions can always be withdrawn without taxes or penalties, at any time.


Similar to other custodial accounts, withdrawals must be used for the benefit of the child.

Why save and invest at Fidelity


No account fees or minimums3

$0 commissions for online US stock and ETF trades4—plus no account fees or minimums to open an account.


Broad choice of investments

Access a range of investments, including stocks, ETFs, mutual funds, and more.


Best-in-class research

We offer industry-leading5 investment research to help you invest wisely.


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Resources

Turbocharge your child's retirement

The earlier your kids start saving in a Roth IRA for Kids, the greater the opportunity to build a sizable nest egg. See how.


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Compare Fidelity accounts to save and invest for kids

View and compare your options to save and invest for your child at Fidelity.


View and compare options

6 smart ways to save money for kids

Read our Fidelity Smart Money® article for an overview of accounts that could make sense for a child.


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