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.