Roth IRA providers usually require an adult to open and manage a Roth IRA with custody on behalf of a child. The main difference between a custodial Roth IRA and a standard Roth IRA is that, with a custodial account, the adult controls the account and makes investment decisions on behalf of the child. Next, we'll look at two types of IRAs for children, the benefits offered by these tax-advantaged investment instruments, and how to open and make contributions to an IRA for children. In general, the Roth IRA is the preferred IRA for children who now have limited incomes, as it is recommended for those who are likely to be in a higher tax bracket in the future.
The same contribution and distribution rules that apply to traditional and Roth IRAs also apply to custodial IRAs. While you might see brokers touting a Roth IRA for children (like Fidelity Investments does), there's nothing special about the way a child's IRA works, at least when it comes to the IRS.