IRA for Minors
A retirement account for children under 18 with earned income
- Benefit from tax-deferred potential earnings
- Choose a Roth or a Traditional IRA
- Build a portfolio from a wide range of investment choices, or consider an automated advisory solution with Core Portfolios
annual contributions
$6,000, or 100% of compensation, whichever is less
4.8M
16–19 year olds are employed in the US1
Why a IRA for minors?
Eligibility information
Eligible participants are under age 18 and must have earned income for the tax year in which a contribution is made
Tax-deferred earnings
Earnings are tax-deferred, 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
Already have an IRA? Contribute now.
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 custodian (parent 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 custodian (parent or legal guardian) establishes, trades, and maintains the account for the benefit of the minor. Only one custodian 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 to 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 $6,000, 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 determine the exact amount of your child’s contribution that can be deducted, consider using the IRA Selector or view IRA Contribution Limits and Deadlines to learn more.
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.
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Managed Portfolios
Professional management, diversified portfolios
Tap into professional money management from E*TRADE Capital Management. Choose from an array of customized managed portfolios to help meet your financial needs.