You can open a Roth IRA for kids if they meet certain requirements, which is a great thing. If you’d like to find out how to set up a Roth IRA for your kids, and what the requirements are for that, read on.
But first, why consider doing this?
A Roth IRA (which is also sometimes called a custodial IRA for kids) can be an excellent way for parents to help their children invest for the future.
While retirement is probably the last thing on your child’s mind, that doesn’t mean you can’t put the idea of preparing for the future there.
You can show them the power of starting early and help them form good habits now, or just start the process for them if they are very young. (Even a baby can have a Roth IRA, IF they meet the requirements. As we’ll go into later, there’s no minimum age to open an IRA.)
Opening and funding a Roth IRA for your kids can be a great way to give them a financial head start in life.