Can kids contribute to a Roth IRA?
Yes, but to be eligible for a Roth, a child has to have earned income from a job. Investment income doesn’t count, nor does an allowance or sporadic payments for chores kids do around the house. For children who qualify, opening a Roth is almost a perfect plan because kids most likely won’t owe taxes on the money when they earn it, and withdrawals won’t be taxed, either.
