Client Resource Center

Practical answers for your questions

4775 LINGLESTOWN RD STE 100 • HARRISBURG, PA 17112
Phone: 717-657-1300 • Fax: 717-657-0987

IRA: Can my child set up an IRA?

Question: Can my child set up an IRA?

Answer: If your child has wages or self-employment income, he or she can contribute to an IRA. However, in 2020 the contribution cannot exceed the child's earned income or $6,000, whichever is lower.

Your child can choose between making a deductible IRA contribution and a nondeductible Roth IRA contribution. In most cases, a Roth IRA will have the greatest long-term benefit for your child.