LyntaxGroup Financial Insights
The earlier your child starts saving, the bigger their future can grow—tax-free.
What is a Roth IRA for Kids?
A Roth IRA for Kids is a powerful savings tool that allows children to start building wealth at a young age. It’s just like a regular Roth IRA—but it’s set up for a minor (under 18) and managed by an adult custodian (usually a parent or guardian).
Once your child reaches adulthood (age 18 or 21, depending on your state), the account becomes theirs to control.
Why Open One?
✅ Tax-free growth: Investment earnings grow without taxes
✅ Tax-free withdrawals in retirement (if rules are followed)
✅ Start early, save more: Time + compound interest = serious savings
✅ Flexible use: Kids can access their original contributions any time, without penalties or taxes
Who Can Contribute?
Your child must have earned income to be eligible—this could be from:
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A summer or part-time job
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Babysitting
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Dog walking
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Lawn care
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Freelance or self-employment work
📌 Important: Keep records of your child’s income, especially if they aren’t filing a tax return.
You (or another adult) can match their earnings with a contribution, as long as the total doesn’t exceed their earned income—or $7,000 for 2025, whichever is less. For example, if your teen earns $2,000 in the year, up to $2,000 can be contributed to the Roth IRA.
Smart Ways to Contribute
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Let your child contribute some of their own earnings
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Add a matching contribution as a reward or gift
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You can fully fund the account yourself, as long as your child earned the money
🧠 Tip: Even if your child isn’t thrilled now, this could be a life-changing gift they’ll appreciate later.
Accessing the Money
One of the best features of a Roth IRA is flexibility.
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Your child can withdraw their contributions anytime—for any reason—without taxes or penalties.
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Earnings (growth from investments) can be withdrawn tax-free after age 59½, if the account has been open at least 5 years.
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There are exceptions for early withdrawals of up to $10,000 in earnings (e.g. for a first-time home purchase).
⚠️ If they withdraw earnings early without qualifying, there may be a 10% penalty and income tax.
Final Thoughts from LyntaxGroup
Opening a Roth IRA for your child can set them up for financial success. Even small contributions now can lead to hundreds of thousands of dollars—or more—by retirement.
💬 Not sure how to get started or want to make sure you’re doing it right?
LyntaxGroup’s advisors are here to help guide you every step of the way—from setting up the account to choosing smart investments.
📞 Reach out to LyntaxGroup today to learn more about how a Roth IRA for Kids can benefit the young people in your life. It’s one of the best gifts you can give them—for now and for their future.