Here’s something most teenagers and college students never hear: you can open and contribute to a Roth IRA at literally any age. There’s no minimum. A 15-year-old with a summer job qualifies just as much as a 35-year-old with a salary.
The one real requirement? You need taxable earned income. We’re talking wages from a job — babysitting, lifeguarding, retail, food service, lawn care, whatever you’re doing to bring in money. That counts. What doesn’t count is money that just shows up without you working for it — things like interest on a savings account, dividends from investments, or rental income. Those don’t qualify.
And being claimed as a dependent on your parents’ tax return? Totally irrelevant. That has nothing to do with your eligibility. A lot of people assume it disqualifies them. It doesn’t. The IRS looks at your earned income, not your tax filing status or whose return you appear on.
There’s also an income ceiling to be aware of — Roth IRA contributions phase out once your modified adjusted gross income gets high enough. For most young people just starting out with part-time or seasonal work, that ceiling is so far away it’s basically not a concern.
One important practical note for minors: most brokerages won’t let someone under 18 open an IRA in their own name. Instead, you’d open a custodial Roth IRA, where a parent or guardian manages the account on your behalf until you reach the age of majority (typically 18 or 21, depending on your state). Once you’re an adult, the account transfers fully to you. It works the same way investment-wise — this is just a legal formality around account ownership.
So why does any of this matter when you’re young? Because a Roth IRA grows tax-free. Money you put in now — even small amounts — has decades to compound before you’d ever touch it. Starting at 16 instead of 26 is genuinely a big deal, even if the dollar amounts feel tiny right now.
You can only contribute up to what you actually earned that year — if you made $2,000 over the summer, $2,000 is your ceiling for contributions. There’s also an IRS annual dollar cap on contributions (check the IRS website for the current limit, as it adjusts periodically), though for most teens with part-time income, the earned income limit will be the binding one. Even that small amount, invested early, can grow significantly over time.