What You Need to Open a Custodial Roth IRA: The Full Checklist

I am not a financial advisor or tax professional. Everything here is educational content based on my own experience and publicly available IRS rules — not personalized financial advice. Always confirm details on irs.gov or with a qualified tax professional before making decisions for your family.

You’ve already decided you want to open a custodial Roth IRA for your child. You’ve done the research, you understand why starting now matters, and you have the brokerage application open in another tab. What’s stopping you is the nagging feeling that you’re missing something — a document, a form, a number — that’s going to cause the whole thing to get rejected. I’ve been there. When I opened custodial Roth IRAs for my own kids, I spent an embarrassing amount of time second-guessing what I actually needed before I could hit submit. So here is the complete list of what you need to open a custodial Roth IRA, including the things most parents forget — and the things people worry about unnecessarily.

One important structural note before we get into the checklist: not every brokerage offers a custodial Roth IRA. Some institutions that advertise “custodial accounts” are actually offering UTMA or UGMA custodial brokerage accounts — an entirely different product with completely different tax treatment and no retirement account protections. When you’re searching, use the specific terms “custodial Roth IRA” or “Roth IRA for minors.” Don’t assume that any custodial account is a Roth IRA. They are not the same thing.

Where Can I Open a Custodial Roth IRA?

The good news is that several major brokerages do offer custodial Roth IRAs. Fidelity, Charles Schwab, and E*TRADE all currently offer them, and each allows you to open a custodial Roth IRA online. Vanguard has historically offered them but has periodically changed access requirements, so verify current availability directly on their site before assuming. When I searched “Vanguard custodial IRA what do you need to open account,” I found that requirements shift based on account type and platform changes — always go directly to the brokerage’s current account-opening page rather than relying on third-party summaries.

None of these major brokerages require a minimum deposit to open a custodial Roth IRA. Fidelity and Schwab both allow you to open the account with $0 and fund it later. That removes one of the most common anxiety points. You do not need to have the full contribution ready on the day you apply.

Who Offers Custodial Roth IRAs — and Who Doesn’t

Beyond the major brokerages, many banks and credit unions do not offer custodial Roth IRAs at all. Local banks, in particular, often offer only UTMA accounts when you ask about custodial accounts for minors. Robo-advisors are inconsistent — Betterment does not currently offer custodial Roth IRAs, while some others have added them. Always search specifically for “custodial Roth IRA” on any platform before you assume it’s available. If the platform’s search results only surface UTMA or UGMA accounts, that’s your answer.

The accounts that do exist are structurally clear: you, the custodian, control the account until the child reaches the age of majority in your state — typically 18 or 21. At that point, the account transfers to the child’s sole control. That transfer happens automatically regardless of how much is in the account, so it’s worth having a conversation with your child about the account long before they turn 18.

What You Need to Open a Custodial Roth IRA: The Full Checklist

Here’s everything the application will actually ask for. I’ve broken it into two parts: your information as the custodian, and your child’s information.

Your Information (the Custodian)

• Your legal name (exactly as it appears on your Social Security card)
• Your Social Security number
• Your date of birth
• Your current home address
• Your phone number and email address
• A linked bank account (routing and account number) to fund the contribution

The Child’s Information (the Minor Account Owner)

• The child’s legal name
• The child’s Social Security number
• The child’s date of birth
• A home address for the child (typically the same as yours)
• A record of the child’s earned income for the contribution year

That last item — the earned income record — is the one people either forget entirely or overthink. Let me address both.

The Earned Income Requirement: What It Is and What You Don’t Need

A Roth IRA contribution — for a minor or an adult — can never exceed the contributor’s earned income for that year. For 2026, the contribution limit is $7,500 or the child’s earned income, whichever is lower. Confirm the current figure at irs.gov before contributing, since limits adjust annually. If your child earned $1,200 from babysitting this year, the maximum Roth IRA contribution is $1,200, not $7,500.

Here’s the part that relieves a lot of parental anxiety: your child does not need a W-2. Self-employment income from babysitting, lawn care, tutoring, pet sitting, or any other informal work qualifies as earned income. The IRS does not require that income to have been reported on a W-2 for it to count. However, you do need to be able to document it — and that documentation is entirely in your hands.

What a Proper Earned Income Record Looks Like

A simple dated spreadsheet or notebook is sufficient. Each entry should include the date the work was done, a description of the work, who paid, and the amount received. For example: “June 14 — mowed lawn for the Hendersons, $40” or “August 3 — babysat for two neighbors, 4 hours each, $15/hour, $120 total.” You’re not filing this anywhere. You’re keeping it with your tax records in case the IRS ever asks. In my experience, the most important thing is consistency — logging payments as they happen rather than trying to reconstruct them at year-end.

If your child works for your own business, the documentation requirements are stricter and the rules more nuanced. That’s a situation where a dedicated record-keeping system really pays for itself — more on that in a moment.

Documents to Open a Custodial Roth IRA: What You Do NOT Need

This is where I think the checklist format actually helps most, because the anxiety is often about imagined requirements. Here is a clear list of what brokerages do not require at the point of application:

• You do not need a W-2. Informal self-employment income qualifies, as long as you document it.
• You do not need a minimum deposit. Fidelity and Schwab both allow $0 to open. You can fund later.
• You do not need the child to be present. You open the account as custodian. Some brokerages ask the child to sign documentation when they reach the age of majority, but the initial application is yours to complete.
• You do not need a separate tax ID for the child. Their Social Security number serves this purpose.
• You do not need to show proof of income upfront. The brokerage takes your word for it at application. The documentation you keep is for IRS purposes, not for account approval.

How to Open a Custodial Roth IRA Online: What to Expect During the Application

Most custodial Roth IRA applications take between 10 and 20 minutes to complete online, assuming you have all the information above ready. The process at Fidelity, for instance, walks you through a standard identity verification flow, then asks for the minor’s information, then prompts you to link a funding account. You confirm you understand the account will transfer to the child at the age of majority, and you submit.

However, applications can be rejected or placed on hold for a few specific reasons. The most common is a mismatch between the Social Security number and name on file with the Social Security Administration. This happens more often than you’d expect with children — especially if the name on the SSA record differs from how you’ve spelled the name on the application. A second common reason is an address the brokerage cannot verify through its identity-verification system. If your address is new, rural, or associated with a P.O. box only, you may be asked to provide additional documentation. In both cases, calling the brokerage directly resolves it faster than any online workaround.

A Record-Keeping System That Does the Heavy Lifting

If your child’s income comes from informal jobs, a basic spreadsheet works fine. But if they work for your own business — or if you plan to pay them for real tasks and want a system that holds up under scrutiny — I’d recommend the Hire Your Kids Record Book: The Complete Record-Keeping System for Parents Who Hire Their Kids ($27.99). It’s designed specifically for this situation: documenting that the work was real, that the pay was reasonable, and that you have the kind of contemporaneous records that make an audit a non-event rather than a nightmare.

This isn’t a book I recommend because it’s flashy — I recommend it because the gap between “we kept a rough log” and “we have a proper record” is exactly where families run into trouble. The Roth contribution itself is only as solid as the earned income documentation behind it. If you’re doing this seriously, set up a proper system from day one.

As a complementary resource, 475 Tax Deductions for Businesses and Self-Employed Individuals is worth having if your child’s work connects to a family business. It covers the deduction side of paying your child — which is the other half of the tax strategy that makes this so powerful.

Is a Custodial Roth IRA Right for Your Situation?

This account works especially well if:

• Your child has genuine earned income from babysitting, tutoring, lawn care, or similar work
• You want decades of tax-free compounding to work in their favor
• You’re comfortable maintaining a simple income log each year
• Your child’s total earned income is low enough that they owe little or no federal income tax (the 2026 standard deduction for dependents is the greater of $1,350 or earned income plus $450)

This account may not be the right fit if:

• Your child has no verifiable earned income — gifts and allowances do not qualify
• You’re looking for an account you can earmark for college (a 529 plan is a better tool for that)
• You want to retain full control of the assets past the age of majority (the account transfers to the child by law)

Frequently Asked Questions

What do you need to open a custodial Roth IRA?

You need your own legal name, Social Security number, date of birth, and address; the child’s legal name, Social Security number, date of birth, and home address; a linked bank account to fund contributions; and a record of the child’s earned income for the tax year. You do not need a W-2, a minimum deposit, or the child to be present at the time of application. The 2026 contribution limit is $7,500 or the child’s earned income, whichever is lower — confirm the current limit at irs.gov.

Vanguard custodial IRA — what do you need to open the account?

Vanguard has historically offered custodial Roth IRAs, but availability and requirements have shifted over time as Vanguard has updated its platform. The core information you’d need is the same as at any brokerage: your Social Security number and personal details, the child’s Social Security number, date of birth and address, and documentation of the child’s earned income. However, I’d strongly recommend verifying current availability directly on Vanguard’s website before relying on any third-party summary — including this one — because Vanguard’s account offerings have changed and may continue to change.

Where can I open a custodial Roth IRA online?

Fidelity, Charles Schwab, and E*TRADE currently offer custodial Roth IRAs that you can open entirely online. Fidelity and Schwab both allow you to open with a $0 minimum deposit. Many banks, credit unions, and robo-advisors do not offer custodial Roth IRAs — they may offer UTMA custodial accounts instead, which are a completely different product. Always search specifically for “custodial Roth IRA” or “Roth IRA for minors” on any platform before assuming the product is available.

What documents do I need to open a custodial Roth IRA?

The application itself does not require you to upload documents at the time of submission. What you need to have on hand — for IRS purposes, not for the brokerage — is a written record of your child’s earned income: a dated log showing who paid the child, for what work, and how much. This record is kept with your tax files, not submitted to anyone. If the IRS ever questions the Roth contribution, that log is your protection. A simple spreadsheet or notebook works; a structured record-keeping system is better if your child works for a family business.

Who offers custodial Roth IRAs?

Among major brokerages, Fidelity, Charles Schwab, and E*TRADE are the most consistently cited providers of custodial Roth IRAs for minors. Vanguard has offered them historically but verify current availability directly. Most banks, many credit unions, and several robo-advisors do not offer the product — they offer UTMA accounts instead, which are custodial brokerage accounts, not retirement accounts. The tax treatment, withdrawal rules, and long-term purpose of UTMA accounts are entirely different from a custodial Roth IRA, so confirm exactly which product you’re opening before you submit an application.

Final Verdict: Just Start the Application

The biggest mistake I see with custodial Roth IRAs isn’t a wrong number on the application — it’s the delay that comes from waiting until everything feels perfectly sorted. Here’s the honest summary of what you need to open a custodial Roth IRA: your details, your child’s Social Security number and date of birth, a bank account to link, and a simple log of earned income. That’s it. You don’t need a W-2, a minimum balance, or the child sitting next to you. The application takes about 15 minutes at Fidelity or Schwab, and there’s no deposit required to open.

The 2026 contribution limit is $7,500 or the child’s earned income for the year, whichever is lower — and every year you wait is a year of tax-free compounding your child doesn’t get back. Get your earned income log in order, open the account at a brokerage that actually offers this product, and make the contribution. The mechanics are genuinely straightforward once you stop waiting for a checklist you already have.