IRA for Minors
A retirement account for children under 18 with earned income
- Benefit from tax-deferred growth potential
- Choose a Roth or a Traditional IRA
- Build a portfolio from a wide range of investment choices, or consider automated investment management with Core Portfolios
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Annual contributions
$7,000 for 2025 ($7,000 for 2024), or 100% of taxable compensation for the year, whichever is less
4.8M
16–19 year olds are employed in the US2
Why a IRA for minors?
Eligibility information
Eligible participants are under age 18 and must have earned income for the tax year for which a contribution is made
Tax-deferred earnings
Earnings generally grow on a tax-deferred basis, which may allow for assets to accumulate more quickly than in a taxable account
No annual IRA fees and no account minimums
Transaction fees, fund expenses, brokerage commissions, and service fees may apply
Access to a wide range of investment choices
Choose from a wide range of stocks, bonds, options, 7,000+ mutual funds, and ETFs
Trade more, pay less
With E*TRADE from Morgan Stanley, you pay $0 commissions for online US-listed stock, ETF, mutual fund, and options trades. Here’s a quick overview of our clear, competitive per-trade pricing.1
IRA for Minors FAQs
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Can an individual open an IRA for his or her child?
Yes. If the child is under age 18 and has earned income. The IRA for Minors account is opened by the minor's guardian (natural or legal guardian) who must sign the application. Additional requirements are the minor must be a U.S. citizen or resident with a valid U.S. address.
What are the eligibility requirements for IRA for Minors?
- Eligible participants are under age 18
- The minor must have earned income for the tax year in which a contribution is made
- A guardian (natural or legal guardian) establishes, trades, and maintains the account for the benefit of the minor. Only one guardian is allowed per account.
- The minor must be a US citizen or resident
- IRAs for Minors must be established by the tax filing deadline (without extensions) for the tax year for which the qualifying contribution(s) will apply. This date is generally April 15 of each year. Applications postmarked by this date will be accepted.
How much can a child contribute to his or her IRA?
The current IRA contribution limit is 100% of earned income, or $7,000 for 2025 ($7,000 for 2024), whichever is less.
Can an investor set up recurring contributions to a child’s IRA?
Yes, recurring contributions can be set up to a child’s IRA, up to the annual maximum contribution limit.
Can a child deduct a Traditional IRA contribution?
Determining if a child can deduct all or part of Traditional IRA contribution is based on various factors. To learn more about the amount of your child’s contribution that can be deducted, consider using the IRA Selector or view IRA Contribution Limits and Deadlines, and speaking with your tax advisor.
Are there any fees for a child’s IRA?
There are no annual IRA fees and no account minimums for E*TRADE IRA accounts. Transaction fees, fund expenses, brokerage commissions, and service fees may apply.
Explore similar accounts
Custodial Account
Brokerage account for a minor
Managed by a parent or other designated custodian until either the minor reaches the statutory age of termination or custodianship is otherwise terminated.
Coverdell ESA
Save on a tax-deferred basis for a child’s education
Tax-free withdrawals for qualified educational expenses, such as tuition and books.
Core Portfolios
Automated investment management
Get a diversified portfolio that’s monitored and managed for a low annual advisory fee of 0.30% and $500 minimum.6