I want to set up a Roth IRA for my son, who is 16 and has started to work, but we can’t meet the $1,000 initial investment or the $100 monthly automatic investment that most investment companies require. Can you recommend any brokerages or fund companies with lower minimums?
It’s a wonderful idea to set up a Roth IRA for your son, and your timing is perfect: You can open a Roth IRA for a child of any age who has earned income from a job, and you have until April 17, 2012, to make contributions for 2011. You can invest up to the amount of income the child earned for the year, with a $5,000 maximum.
A few firms make it easy for kids to start small Roths. TD Ameritrade has no minimums or annual fees for its IRAs (the IRA must be in the minor’s name as well as the custodian’s name, and it must use the minor’s tax ID number). You can invest in stocks, funds or other investments available in the firm’s brokerage accounts, including more than 100 commission-free exchange-traded funds. And you can sign up to have any amount – even just $50 per month – automatically transferred from a bank account to the IRA.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Scottrade offers IRAs to minors with a minimum investment of $500 for new accounts and with no annual fees or setup costs. Charles Schwab allows minors to open a custodial Roth IRA with $100; it charges no annual or maintenance fees.
-
Stock Market Today: Stocks Soar on China Trade Talk HopesTreasury Secretary Bessent said current U.S.-China trade relations are unsustainable and signaled hopes for negotiations.
-
2026 Disney Dining Plan Returns: Free Dining for Kids & Resort BenefitsPlan your 2026 Walt Disney World vacation now. Learn about the returning Disney Dining Plan, how kids aged three to nine eat free, and the exclusive benefits of staying at a Disney Resort hotel.
-
The Advantages of Brokered CDsBrokered CDs are certificates of deposit sold by brokerage firms that typically offer higher yields. But they don't come without some risk.
-
Creating a Values-Based Financial Planpersonal finance More savers and spenders are thinking big picture when it comes to their financial decisions.
-
Best Online Brokers and Trading Platformsonline brokers Find the best online brokers using our survey that compares investment offerings, tools, apps, advice and more.
-
Solving the Income Challengeretirement planning Generating a regular income stream out of your savings and investments can be anxiety-inducing, but digital solutions, such as Schwab Intelligent Income, can help you get it right.
-
Donate Crypto for a Tax BreakFinancial Planning If you're wondering how to avoid taxes from selling crypto that's appreciated significantly, one answer might be in a donor-advised fund.
-
Should My Money Stay or Go? Employer 401(k) vs. IRA Rollover401(k)s Employers are the newest contenders for the rollover assets from your retirement plan. Here’s what to consider when leaving your job and choosing whether to leave your money in your old employer’s defined contribution plan or roll it over to an IRA.
-
Schwab, TD Ameritrade, E*Trade, Fidelity Go Commission-Freeinvesting TD Ameritrade commissions vanish Oct. 3, Schwab and E*Trade start Oct. 7, Fidelity finally joins in effective Oct. 10
-
5 Best American Funds for Retireesmutual funds Until a few years ago, the American Funds family of mutual funds was available to individual investors only through intermediaries such as brokers and advisors.
