As we step into 2025, now’s the perfect time to think about your financial goals -- and your child’s future too. If your child earns income, opening a custodial Roth IRA can be a game-changer. By starting early, you can set them on the path to a million-dollar retirement.
How to Build a Million-Dollar Roth IRA for Your Child Starting in 2025
By Charlene Rhinehart – Updated Jan 3, 2025 at 1:17PM
Key Points
- If your child is set to earn income in 2025, you can jumpstart their wealth-building journey with a custodial Roth IRA.
- In 2025, you can sock away up to $7,000 to a custodial Roth IRA on behalf of your child.
- If your child starts saving and investing in a Roth IRA early, they could be well on their way to a million-dollar retirement in just a few decades.
About the Author
Charlene Rhinehart is a personal finance writer and former financial analyst. Her goal is to help more individuals build a stock portfolio that's bigger than their shoe collection. With a background in taxes and pageantry, Charlene is always ready to sprinkle a bit of glam and happiness into her work to help individuals achieve their goals.