Can minors have IRAs? If so, are there any restrictions?
Federal law makes no distinctions for minors when it comes to IRA accounts. Like anyone else, the minor will have to have earned income in order to meet the requirements for a pre-tax IRA contribution.
The only issue is the validity of the minor's contract with the bank, but that is governed by state law. Many states have statutes which allow the bank to deal with the minor as an adult in connection with a bank account. It's not often that a financial institution is asked to set up an IRA arrangement for a minor -- we suspect that not too many minors are thinking that far ahead -- so it will be a good idea for you to contact the institution and ask whether it can accommodate you.
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Federal law makes no distinctions for minors when it comes to IRA accounts. Like anyone else, the minor will have to have earned income in order to meet the requirements for a pre-tax IRA contribution.
The only issue is the validity of the minor's contract with the bank, but that is governed by state law. Many states have statutes which allow the bank to deal with the minor as an adult in connection with a bank account. It's not often that a financial institution is asked to set up an IRA arrangement for a minor -- we suspect that not too many minors are thinking that far ahead -- so it will be a good idea for you to contact the institution and ask whether it can accommodate you.
