Custodial Roth IRAs, Made Simple for Families
For the first time, families using FutureMoney can set up Custodial Roth IRAs with legitimate earned income, automated compliance, and long-term investing — all handled seamlessly in one experience.
Get the App
.avif)
Why Custodial Roth IRAs?
We all know the power of Roth IRAs - tax-free growth and compounding.
Custodial Roth IRAs make it possible to start building wealth for your child as early as age 4. Until now, setting one up could mean significant costs in legal, accounting, and tax filings.
With FutureMoney, that complexity is handled for you.
Here’s what it unlocks:
IRS-Compliant Income for Kids:
Turn household tasks into IRS-compliant earned income - eligible for custodial Roth IRA contributions.
Tax-Free Growth:
Contributions grow tax-free, can be withdrawn anytime penalty-free, and all funds withdraw tax-free in retirement.
A Bigger Opportunity:
Contribute up to $7,500 per year per child (vs. a $35k lifetime cap for Junior Roth).
Generational Wealth, Simplified:
What was once reserved for the 1% is now accessible to all families.
Pricing Plans
Introducing Generations Plan
Household EIN
Family Payroll
Child Tax Reporting
Management Fee: 0.20%
Roth IRA
Traditional IRA
General Investing
529 Plans
Generational Wealth
Custodial Roth IRA
- EIN
- Family Payroll
- Child Tax Credits
Accounts under $60,000:
$15/month or $120/year
Get Started
How it works:
Choose a Custodial Roth IRA
Select a Custodial Roth IRA to start building tax-free retirement savings for your child.
Set up earned income
FutureMoney helps create a compliant job record so your child’s earnings are reported correctly.
Automated compliance
Payroll setup, tax reporting, and contribution limits are managed for you to keep everything IRS-safe.
FutureMoney invests
Your child’s Custodial Roth IRA is now open and ready to grow — alongside 529s and more, all in one place.
y replacing the expensive services of legal professionals, payroll agents, and tax advisors, we enable every family to legally establish a bona fide household employment relationship with their child, run compliant payroll, and invest in a Roth IRA. We’re saving families over $2,000 a year versus managing it yourself.
FutureMoney Generations plan replaces costly legal, payroll, and tax services that helps families legally employ their child, run compliant payroll, and invest in a Roth IRA.
Why Families Choose FutureMoney
Tax-Advantaged Options
We offer Junior Roth IRAs, 529 Plans, and more to maximize your savings’ growth.
Automated Contributions
Set up recurring investments to grow your child’s account effortlessly.
Transparency for Co-Parents
Share account progress while keeping finances separate.
Flexible Goals
Save for anything - college, a first home, or retirement - all in one platform.
Fully Managed Portfolio Accounts
Expert-built, diversified portfolios for every family
Start Investing Today
It has never been easier to give your child a financial head start. With FutureMoney’s Generations plan, everyday effort can become a foundation for long-term, tax-advantaged growth.
Investment options
FutureMoney offers many investment account types for investing for children with tax-advantages, control and security.
01
Exclusive
Junior Roth IRA
Invest for your children and grow the money tax-free without the need for earned employment income.
02
General Investing
A General Investing Account gives you full control over investments, with flexibility on when to gift or access assets, unlike a UTMA/UGMA account.
03
529
Lets you grow savings tax-free for education expenses, with a best in class digital experience.
FAQs
How does Custodial Roth IRA this work?
FutureMoney brings together earned income setup and long-term investing in one streamlined experience. Through the Generations plan, families can establish legitimate earned income for their child, meet required tax and reporting standards, and invest those earnings into a Custodial Roth IRA or other accounts, all in a single workflow.
Why can’t I just open a custodial Roth IRA directly with a broker?
Opening the account is only the first step.The IRS requires Roth IRA contributions to come from legitimate earned income supported by proper documentation and tax reporting. Many brokers do not help with this part of the process.FutureMoney helps families address both requirements so contributions qualify and remain within IRS guidelines.
Is my child really old enough to do this?
Yes. Children as young as 4 can participate when parents assign age-appropriate household work. As long as the work is non-hazardous, reasonable for the child’s age, and properly documented, earned income can qualify for a Custodial Roth IRA. FutureMoney helps families structure this correctly from the start.
Is it legal for my child to be paid for chores?
Yes. Federal labor and tax laws allow parents to employ their children for non-hazardous, age-appropriate household tasks such as basic organizing, cleaning, or yard maintenance. The key is establishing a legitimate employment arrangement with reasonable pay, proper documentation, and accurate tax reporting. FutureMoney’s Generations plan is designed to support families through this process in a compliant way.
How can my minor child generate an earned income?
Minor children can earn legitimate income through age-appropriate work when it is properly structured and documented. The IRS recognizes earned income for work that is reasonable for a child’s age, abilities, and local labor laws. Common examples include household tasks such as basic organizing, cleaning, or yard maintenance. The key requirements are establishing a bona fide employment arrangement, paying reasonable compensation based on local market rates, and maintaining accurate records of the work performed. The Generations plan helps families put these pieces in place so earned income is set up correctly and meets IRS requirements.
Does my child need to file taxes, and how does it impact my own tax filing?
Your child may need to file a tax return if their earned income exceeds the applicable filing threshold. For example, the 2024 federal income threshold was $13,850. State filing requirements may also apply depending on where you live. Filing taxes does not affect your child’s dependent status or your existing tax benefits. In most cases, parents can continue their own tax filing process without any changes.
Is my money safe?
- Yes. Here’s how:
- Custodial Roth IRAs are securely held with Altruist, trusted by 5000+ advisors.
- Your assets are protected up to $500,000 through SIPC coverage
- Your data is kept safe using bank-level AES-256 encryption
- Even if you stop using FutureMoney, your child’s account remains theirs, and is accessible through the custodian. Assets can be transferred or managed independently without losing tax benefits.
How much can my child contribute each year?
Contributions are limited to the lesser of your child’s earned income or the IRS annual cap ($7,500 in 2026). FutureMoney ensures contributions stay within these limits.
