What is a Child roth IRA?

A Child roth IRA is a retirement savings account available to minors with earned income, allowing contributions of up to $7,000 annually (2025 limit) using after-tax dollars that grow completely tax-free. Unlike traditional retirement accounts, qualified distributions from Roth IRAs are never taxed. Children must have legitimate earned income from employment or self-employment to qualify for contributions. The Child traditional IRA strategy often works alongside Hiring kids approaches to generate the earned income necessary for contributions while maximizing long-term tax-free compound growth potential.

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