What is a custodial Roth IRA for kids?

A custodial Roth IRA for Kids can be opened and receive contributions for a minor with earned income for the year. Roth IRAs provide the opportunity for tax-free growth. The earlier your kids get started saving, the greater the opportunity to build a sizeable nest egg.

Can a child open a Roth IRA?

As custodian, you'll be responsible for investment decisions, and you must invest that money for their benefit. Once they reach the minimum age of 18 or 21, the account will need to be transferred to a new account in their name. Like it or not, that means the money will be 100% theirs to control. Should you open a Roth IRA for a child?

How do I set up a Roth IRA for kids?

One way to do that is to establish a custodial account Roth IRA, or what is known at Fidelity as a Roth IRA for Kids, and more generally as a Roth IRA for minors. A Roth IRA for Kids provides all the benefits of a regular Roth IRA, but is geared toward children under the age of 18 and requires an adult to serve as custodian.