Teen Ira Gallery ●

: Wages from a summer camp, mowing lawns , babysitting, or even professional child modeling count as earned income .

: Parents can contribute on a teen's behalf . If a teen earns $1,000 at a job and spends it, a parent can still put $1,000 of their own money into the teen’s Roth IRA. 3. The "Gallery" Effect: Compound Interest in Action teen ira gallery

: Every dollar earned through interest or stock gains grows entirely tax-free . When you retire, qualified withdrawals are also tax-free. 2. The Golden Rule: Earned Income : Wages from a summer camp, mowing lawns

: The money in the account belongs to the teen, but the custodian manages it until they reach the age of majority (usually 18 or 21). the limit is $7

: You can eventually use up to $10,000 of your earnings penalty-free for a first home purchase. Summary Table: Teen Roth IRA at a Glance 2025 Rules 2026 Rules Max Contribution Requirement Earned Income Earned Income Tax Status After-tax (Roth) After-tax (Roth) Management Custodial (Adult Managed) Custodial (Adult Managed)

Since minors cannot legally open investment accounts themselves, a parent or guardian must set up a custodial account .

: For 2026, the limit is $7,500 or 100% of your earned income , whichever is less.