While you're doing so, it's also important to consider what counts as "earned income" for a child's Roth IRA. The maximum annual contribution for 2024 is $7,000 or the total of the child's earned income for the year — whichever is less. For instance, if a 16-year-old works at a coffee shop and earns $4,000 over the summer, that $4,000 qualifies as earned income. Earnings from a part-time job, such as working at a grocery store, fast food restaurant, or retail shop, count as earned income. For instance, if a 16-year-old works at a coffee shop and earns $4,000 over the summer, that $4,000 qualifies as earned income.

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