You must be at least 18 years old to open an IRA in your own name

The IRS does not set a maximum age for opening a traditional or Roth IRA — you can open one at 18, at 65, or at 85. The only hard requirement is that you have earned income (money from a job, self-employment, or certain other sources) in the year you want to contribute. If you are under 18, you cannot open an IRA by yourself, but a parent or guardian can open a custodial IRA on your behalf.

The age rule is straightforward because the IRS cares about one thing: whether you earned money that year. A 16-year-old with a summer job can have a custodial IRA. A 70-year-old with no income cannot contribute to one. Age alone does not stop you; income does.

Key Takeaways

  • You must be 18 to open an IRA in your own name, but a parent or guardian can open a custodial IRA for anyone with earned income.
  • The IRS requires earned income in the year you contribute — you cannot fund an IRA with investment returns, gifts, or inheritance alone.
  • There is no upper age limit; you can open a traditional IRA at any age as long as you have earned income that year.
  • Roth IRAs have no age limit either, but traditional IRAs have required minimum distributions starting at age 73 (as of 2023).

What counts as earned income for IRA purposes

Earned income means money you received for work — wages from a job, net self-employment income, or certain other sources. It does not include investment gains, rental income, Social Security, pensions, or gifts. If you are 16 and work at a grocery store, your paycheck counts. If you are 70 and retired, your pension does not.

The amount you can contribute to an IRA is limited to the lesser of your earned income that year or the annual contribution limit set by the IRS. In 2024, that limit is $7,000 for most people under 50, and $8,000 for people 50 and older. If you earned only $3,000 that year, you can contribute only $3,000, even if you are under the age limit.

Custodial IRAs for minors under 18

A parent, guardian, or other adult can open a custodial IRA for a minor who has earned income. The adult controls the account until the child reaches the age of majority (usually 18 or 21, depending on your state). The child's earned income is what matters — if your 15-year-old has a part-time job and earned $2,000 that year, a custodial IRA can be funded with up to $2,000.

Custodial IRAs work the same way as regular IRAs once they are open. The money grows tax-deferred (in a traditional IRA) or tax-free (in a Roth IRA). When the child turns 18 or reaches the age of majority in your state, the account becomes theirs to control. Many brokers offer custodial accounts — Fidelity, Vanguard, and Charles Schwab all have options — and the setup process is similar to opening a regular IRA, with the addition of the minor's Social Security number and the custodian's information.

Age limits for traditional IRAs and required distributions

You can open a traditional IRA at any age, but once you turn 73, you must begin taking required minimum distributions (RMDs) each year. This is a withdrawal amount set by the IRS based on your age and account balance. You cannot avoid this by not opening the account or by leaving the money untouched — the IRS requires the withdrawal whether you need the money or not.

If you are still working and your employer offers a 401(k) or similar plan, you may be able to delay RMDs from that plan until you actually retire, but traditional IRAs do not have this exception. The RMD rules exist because the IRS wants to collect taxes on the money eventually; it is not a penalty, but a mandatory schedule.

No age limit for Roth IRAs

Roth IRAs have no age limit for opening or contributing. You can open a Roth at 75, 85, or any age, as long as you have earned income that year. Unlike traditional IRAs, Roth IRAs do not require minimum distributions during your lifetime — you can leave the money in the account to grow indefinitely and withdraw it whenever you choose.

This makes Roth IRAs attractive for older workers who want to continue saving without being forced to take withdrawals. However, there is an income limit for Roth contributions. If your income is above a certain threshold (which varies by filing status and changes yearly), you cannot contribute directly to a Roth. In 2024, the phase-out range for single filers starts at $146,000 and ends at $161,000, but these numbers change annually.

What happens if you do not have earned income

If you have no earned income in a given year, you cannot contribute to an IRA that year, regardless of your age. This applies even if you have substantial savings or investment income. A retiree living on Social Security and investment returns cannot fund an IRA. A stay-at-home parent with no job cannot fund an IRA unless their spouse has earned income and they file jointly (in which case a spousal IRA may be an option).

The earned income requirement exists because IRAs are designed to encourage retirement savings tied to work. If your income situation changes — you get a job, start a business, or return to work — you can resume IRA contributions in the year you earn income again.

Frequently Asked Questions

Can a 16-year-old open an IRA without a parent?

No. Anyone under 18 needs a parent or guardian to open a custodial IRA. The adult's name appears on the account, and they control it until the minor reaches the age of majority. At that point, the account transfers to the young person's control.

What if I am 70 and still working — can I open an IRA?

Yes. As long as you have earned income that year, you can open a traditional or Roth IRA at any age. If you choose a traditional IRA, you will need to take required minimum distributions starting at age 73, but you can still contribute if you have income.

Can I contribute to an IRA if I only have investment income?

No. Investment income, rental income, and capital gains do not count as earned income for IRA purposes. You must have money from a job, self-employment, or similar work-related source. If you have no earned income that year, you cannot fund an IRA.

Is there a difference in age rules between traditional and Roth IRAs?

No age difference for opening either type. Both require earned income and allow you to open at any age. The main difference is that traditional IRAs require distributions starting at 73, while Roth IRAs do not require distributions during your lifetime.