Most of us know the power of compound interest, often followed by the wish that we had started saving and investing decades earlier. By opening a custodial Roth IRA for a grandchild, you are giving them the one asset money usually can't buy: time. If your grandchild has a summer job or a part-time gig, they hold the 'golden ticket' of earned income needed to open an account. Matching their earnings today does more than teach the value of a dollar — it plants a seed that grows into a tax-free fortune by the time they reach their own retirement.
Roth IRA rules for 2026 allow for a generous contribution of up to $7,500, provided the amount doesn’t exceed the child’s total earnings. As you look at your estate planning and gifting strategies this year, consider sitting down with your grandchild to explain the magic of the "Roth match." It’s a conversation that can change the trajectory of their financial life — and a legacy that will continue to grow long after your initial gift has been made.
