Free Custodial Roth IRA Calculator
A first paycheck can do more than cover today’s spending. Use our custodial Roth IRA calculator to explore how your child’s earnings could help build their retirement savings—even before adulthood.
Why Use a Custodial Roth IRA Calculator for Your Child?
Starting a custodial Roth IRA for your child or teenager can help them build long-term wealth while developing healthy investing habits. Unlike traditional retirement accounts, Roth IRA contributions are made with after-tax dollars, allowing investments to grow tax-free and qualified withdrawals to remain tax-free. The earlier your child starts investing, the more time their money has to benefit from compound growth. With KidVestors' free custodial Roth IRA calculator, parents can estimate potential retirement savings, explore different monthly contribution amounts, and see how investing even small amounts early could make a significant difference in their child's financial future.
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Frequently Asked Questions About Custodial Roth IRAs
1. What is a custodial Roth IRA, and how does it work?
A custodial Roth IRA is a retirement investment account established and managed by an adult on behalf of a minor with qualifying earned income. Parents or guardians oversee the account until the child reaches the applicable age of majority, when control transfers to the child. Contributions are made with after-tax dollars, and investments can grow tax-free, with qualified withdrawals also tax-free.
2. Can I open a Roth IRA for my child if they're under 18?
Yes! There is no minimum age requirement for opening a custodial Roth IRA. However, your child must have qualifying earned income to contribute. Eligible earnings may include wages from a part-time job, babysitting, tutoring, lawn care, or other legitimate work. Regular allowances, birthday money, and monetary gifts generally do not count as earned income.
3. How much can a child contribute to a custodial Roth IRA in 2026?
For 2026, the annual IRA contribution limit for individuals under age 50 is $7,500 or their eligible earned income for the year, whichever is less, subject to applicable income restrictions.
For example, if your teenager earns $3,000 from a summer job, they can generally contribute up to $3,000 that year. If they earn $10,000, their maximum contribution would generally be $7,500. The limit applies to combined contributions across traditional and Roth IRAs.
4. Can parents contribute to their child's custodial Roth IRA?
Yes. Parents, grandparents, or other family members can provide money to fund a child's custodial Roth IRA, provided the child has sufficient qualifying earned income and the total contributions remain within IRS limits. For example, if your teenager earns $2,000 working a summer job, you could contribute $2,000 on their behalf while they keep their paycheck for other expenses. The child does not have to contribute the exact dollars they earned.
5. How much could $100 a month grow in a custodial Roth IRA?
If a teenager begins investing $100 monthly at age 16 and earns an assumed average annual return of 7%, their investments could grow substantially by retirement age, provided contributions continue over time. The actual results depend on investment performance, contribution frequency, fees, and market conditions.
Use our free custodial Roth IRA calculator to estimate potential investment growth and compare different savings scenarios. Remember that IRA contributions are subject to annual limits and earned-income requirements.
6. How can I open a custodial Roth IRA for my child?
To open a custodial Roth IRA, choose a financial institution that offers retirement accounts for minors. You'll typically need your child's identifying information, proof of eligibility, and information about the adult custodian.
Through KidVestors, eligible families can access custodial Roth IRA options while their children learn about investing, budgeting, and building wealth through interactive financial education.