Secure Your Child’s Future with the Junior Roth IRA™
for kids
Invest in Their Tomorrow, Today.
Give your child the head start on financial independence they deserve, with the Junior Roth IRA™, exclusively from FutureMoney. Designed to grow tax-free, this groundbreaking account helps parents like you build generational wealth for milestones that matter.
Ready to open a Junior Roth IRA?What Is the
Junior Roth IRA™?
The Junior Roth IRA™ for kids is the best way to invest in your child's future. It offers:
Tax-Free Growth
Keep more money in the family
Early Start, Big Rewards
Compounding returns works best when starting young
Easy setup
Step-by-step fully digital experience
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Why Choose FutureMoney?
FutureMoney makes it simple to start building financial security for your child.
Get the Junior Roth IRA exclusively with FutureMoney:
Goal-Based Investments:
Set and track goals for your child’s future.
Family-Focused Tools:
Share goals with grandparents and other family members.
Automated Contributions:
Automate contributions and investments so you don't have to lift a finger after you've set it up.
Education:
Teach your child financial literacy from an early age.
How Does It Work?
The Junior Roth IRA™ for kids is the best way to invest in your child's future.
1
Open an Account
Sign up in minutes.
2
Set a Goal
Choose what you want to save for — retirement, a first home, or more.
3
Invest with Confidence
Our platform handles the heavy lifting, so you can focus on your family.
4
Watch It Grow
Enjoy the peace of mind that comes with tax-free growth.
Why the Junior Roth IRA™ Stands Out
Highlights:
- Tax-free growth potential
- No earned income required to make contributions
- Favorable FAFSA impact when funded by grandparents
- Optimized for long-term generational wealth building
Junior Roth IRA vs Custodial Roth IRA
Both are great accounts to start investing for kids, but the Custodial Roth IRA has some key limitations that means most families cannot make use of one. The Junior Roth IRA is available to everyone.
The Junior Roth IRA does not require earned employment income to make contributions whereas the Custodial Roth IRA requires that your child earns income. Allowance does not count as income. Unlike your child is an actor or you employ them in your family business, most children do not have income, and therefore do not have Roth IRA contribution room.
A Custodial Roth IRA has maximum annual contribution room of $7,000 per year. By comparison, you can invest up to $35,000 for your child is a minor with a Junior Roth IRA over its lifetime, with no annual limit.
Ready to Start? Invest Today. Empower Tomorrow.
Open a Junior Roth IRA™ and take the first step toward building a brighter financial future for your child.
What is a Junior Roth IRA?
The Junior Roth IRA™, exclusively offered by FutureMoney, allows you to invest up to $35,000 while your child is under 18 and grow that money tax free into their retirement, based on a 529 plan to Roth IRA rollover.
Can I open up a Roth IRA for my kid?
If you’re looking for a Roth IRA for kids, the Junior Roth IRA™ is the perfect solution since it doesn’t require the minor to have earned income to contribute.
We don’t offer Custodial Roth IRAs, which typically require the child to have income and are managed by a parent or guardian until they reach adulthood. Since most minors do not have income, they are not eligible for a Custodial Roth IRA.
We don’t offer Custodial Roth IRAs, which typically require the child to have income and are managed by a parent or guardian until they reach adulthood. Since most minors do not have income, they are not eligible for a Custodial Roth IRA.
How much can I invest in a Junior Roth IRA?
The lifetime maximum for the 529-to-Roth rollover is $35,000. Any amounts that cannot be rolled over would remain in a 529 plan.
What investment options are available in a Junior Roth IRA?
Your account is fully managed, meaning we build and manage the portfolio for you based on the responses you provided on your financial profile and goals. The portfolios can consist of a mix of equities, fixed income and money market, depending on your risk tolerance and investment time horizon.
What qualifies as earned income?
Your child does not need earned income for you to contribute to their Junior Roth IRA.
Earned income for a child includes wages from a job, self-employment income, tips or commissions, as these are payments for work or services. It does not include allowances from parents, scholarships (unless tied to employment), gifts, or investment income (e.g., dividends or interest).
Earned income for a child includes wages from a job, self-employment income, tips or commissions, as these are payments for work or services. It does not include allowances from parents, scholarships (unless tied to employment), gifts, or investment income (e.g., dividends or interest).
How much does a Junior Roth IRA cost?
Access to Junior Roth IRAs are included in all FutureMoney plans. We do not charge any per-account fees. Please see our pricing page for more details about our pricing.
Can I use money from a Junior Roth IRA to buy my first home?
If you’re a first-time homebuyer, you can withdraw up to $10,000 in earnings from your Roth IRA penalty-free for the purchase of your first home. The $10,000 limit applies to the lifetime of the Roth IRA account (not per year). To avoid taxes on the earnings, the Roth IRA must be open for at least 5 years in addition to being used for a first-time home purchase. See IRS website for full details.
How does compound interest work in a Roth IRA for kids?
Compound interest in a Roth IRA for kids works by reinvesting earnings, allowing contributions to grow exponentially over time. Since investments in a Junior Roth IRA™ grow tax-free, gains are reinvested without taxes eating into returns. Starting early maximizes the effect of compounding, potentially turning small contributions into significant wealth by retirement.
Can a child's Roth IRA be used as an emergency fund?
No, the Junior Roth IRA is intended for long-term wealth building. Taxes and penalties apply to unqualified withdrawals.
Where can I sign up for a Junior Roth IRA?
Exclusively through FutureMoney. You can download the FutureMoney app through the Google Play Store or Apple App Store, or through our website.
How old does a child need to be to open a Junior Roth IRA?
You can open a Junior Roth IRA for a child of any age, including future children not born yet. A Junior Roth IRA starts as a 529 plan and rolls over to a Roth IRA once the eligibility criteria are met. If your child not yet born or does not yet have an SSN, we will open a 529 plan with you as the beneficiary, and this can later be changed to set your child as the beneficiary.
Can grandparents fund a Junior Roth IRA?
Yes, grandparents can set up a Junior Roth IRA for their grandchild. As a parent, you can use the Shared Goal functionality to invite grandparents to invest for your child. This allows the grandparent to have control over their contributions to the account, and for both of you to have shared visibility.
What are the tax advantages of a Junior Roth IRA?
The money invested in a Junior Roth IRA grows tax free, meaning any dividends, interest or capital gains in the account are not taxed. Qualified withdrawals are also tax-free.
How do I withdraw money from a Junior Roth IRA?
You can make an unqualified withdrawal in app. To make a qualified withdrawal, please reach out to support@futuremoney.co and we will share with you the required form.
What happens to the money in a Junior Roth IRA when my child becomes an adult?
We will initiate the roll-over process from a Junior Roth IRA to a Roth IRA once your child meets the eligibility criteria. To initiate the roll-over, send us a message at support@futuremoney.co
Can the Junior Roth IRA for kids impact college financial aid?
Free Application for Federal Student Aid (FAFSA) considers Expected Family Contribution (EFC) in determining how much financial aid is provided. The higher the EFC, the lower the amount of financial aid that may be received.
A grandparent’s 529 plan, or Junior Roth IRA, which starts as a 529 Plan has no impact on the EFC calculation. A parent owning the same accounts with their child as beneficiary will have a 5.64% impact on EFC. An investment account owned directly by the student, such as UTMA/UGMA, has a 20% impact on EFC, which is one reason that FutureMoney does not offer UTMA/UGMA accounts.
A grandparent’s 529 plan, or Junior Roth IRA, which starts as a 529 Plan has no impact on the EFC calculation. A parent owning the same accounts with their child as beneficiary will have a 5.64% impact on EFC. An investment account owned directly by the student, such as UTMA/UGMA, has a 20% impact on EFC, which is one reason that FutureMoney does not offer UTMA/UGMA accounts.
Are there penalties for withdrawing money from my child’s Roth IRA?
Yes, non-qualified withdrawals from a 529 plan may be subject to federal income tax and a 10% penalty on the earnings portion of the withdrawal. A 1099-Q will be generated.
It's crucial to carefully consider the tax implications before proceeding with a withdrawal. Please note that you should consult with a tax professional for any detailed questions you have about this, as we are not tax experts and do not provide tax advice.
It's crucial to carefully consider the tax implications before proceeding with a withdrawal. Please note that you should consult with a tax professional for any detailed questions you have about this, as we are not tax experts and do not provide tax advice.
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Your investments are eligible for protection of up to $500,000 (including $250,000 for cash) under SIPC coverage in the event of a brokerage firm's financial failure. SIPC coverage does not protect against market losses.
FutureMoney RIA, LLC - Form CRS, Form ADV Part 2A, Privacy Policy. Atomic Brokerage General Disclosure: FutureMoney RIA has an engagement with Atomic Brokerage LLC (“Atomic Brokerage”), a registered broker-dealer and member of FINRA and SIPC, to bring you the opportunity to open a brokerage account. Brokerage services for customers of FutureMoney RIA are provided by Atomic Brokerage. Neither Atomic Brokerage nor its affiliates are a bank. Investments in securities are Not FDIC insured, Not Bank Guaranteed, and May Lose Value. Investing involves risk, including the possible loss of principal. Before investing, consider your investment objectives and the fees and expenses charged. For more details about Atomic Brokerage, please see the Form CRS, the Atomic Brokerage General Disclosures, and the Privacy Policy. Check the background and custodial/clearing services of Atomic Brokerage on FINRA’s BrokerCheck. Technology services may be provided by AtomicVest. UI Screenshots Disclosure: All screenshots provided are for illustrative purposes only and any performance figures displayed should not be considered representative of actual performance.
529 Plan Disclosure: John Hancock Freedom 529 is an education savings plan offered by the EducationTrust of Alaska, managed by T. Rowe Price Associates, Inc., distributed by John Hancock Distributors LLC through Atomic Brokerage, and cleared by Pershing LLC.Atomic Brokerage is a member of FINRA and is registered with the Municipal Securities Rulemaking Board (MSRB). Investing involves risks, including the potential loss of principal. There are no guarantees that a fund's investment strategy will be successful or that education expenses will be met. Even if you contribute the maximum amount, there is no assurance that the money in your account will be sufficient to cover all the education expenses your beneficiary may incur, or that the rate of return on your investment will match or exceed the rate at which education expenses may rise. The impact of inflation on education expenses is uncertain and could exceed the return on your investments in your Account. Please see the Plan Disclosure Document for additional risks.
If your state or your designated beneficiary’s state offers a 529 plan, you may want to consider what, if any, potential state income-tax or other state benefits it offers, such as financial aid, scholarship funds, and protection from creditors, before investing. State tax or other benefits should be one of many factors to be considered prior to making an investment decision. Please consult with your financial, tax, or other advisor about how these state benefits, if any, may apply to your specific circumstances. You may also contact your state 529 plan or any other 529 education savings plan to learn more about their features. Please contact support@futuremoney.co to obtain a Plan Disclosure Document or prospectus for any of the underlying funds. The Plan Disclosure Document contains complete details on investment objectives, risks, fees, charges, and expenses, as well as more information about municipal fund securities and the underlying investment companies that should be considered before investing. Please read the Plan Disclosure Document carefully prior to investing. 529 PLANS ARE NOT FDIC INSURED, MAY LOSE VALUE, AND ARE NOT BANK OR STATE GUARANTEED.
Earnings in 529 plan or Junior Roth IRA grow tax-free. Qualified withdrawals from these accounts are tax-free. Unqualified withdrawals may be subject to tax and penalty. Consult IRS website and your state tax authority for details. Certain conditions apply to 529 plan to Roth IRA rollover. See here for details.
Projected assets under management are based on current account values, recurring contributions set, estimated returns, and goal dates.
Projected assets under management are based on current account values, recurring contributions set, estimated returns, and goal dates.