Michael West Financials · Checklist
Open a teen Roth IRA, step by step.
A custodial Roth IRA is the single most powerful account a working teen can start, because decades of growth do the heavy lifting. Work down the list — check each box as you go.
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1Confirm earned income
Your teen earned money from work this year — a paycheck or self-employment. Allowance, gifts, and birthday money do not count. No earned income, no Roth.
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2Pick the amount
The most they can put in is the lesser of what they earned and $7,500 this year. For almost every teen, what they earned is the smaller number — so that is the cap.
This year’s contribution $ -
3Choose a custodian
Pick a brokerage that offers a custodial Roth IRA (most large ones do, with no minimum). You open and manage it; the account is in the teen’s name.
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4Open the account
Open the custodial Roth IRA online. You’ll need the teen’s Social Security number and a few minutes. Control passes to them when they reach adulthood in your state.
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5Fund it
Move the contribution in. The cash can come from anyone — many parents match what the teen saves — as long as the total never tops what the teen earned.
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6Invest it
This is the step people forget: cash sitting in the account is not invested. Choose one simple, broad fund so the money can actually grow.
Want to see what a few summers of this becomes by retirement? That’s the whole point — and the Teen Roth IRA guide shows the number.