Can my teenager open a Roth IRA if they have a summer job?

Yes – there's no minimum age for a Roth IRA, only an earned-income requirement. If your teen earns money from a job (babysitting, lifeguarding, a W-2 summer gig, or self-employment), they can contribute up to the lesser of their earned income or $7,000 for 2025. A minor's account is set up as a custodial Roth IRA, managed by a parent until the child reaches the age of majority. This is one of the most powerful gifts you can give: decades of tax-free compounding mean a few hundred dollars contributed in the teen years can grow to thousands by retirement. The earned income must be legitimate and reportable. A common move is for parents to gift the cash to contribute while the teen keeps their paycheck, as long as contributions don't exceed what the child actually earned.