Custodial Roth IRA for relative

[Emerald]

My niece is 14 and looking for her first job. Can I start a custodial IRA for her or would her parents have to do it? Will a Roth and/or traditional IRA affect college financial aid? Thanks.

[bjl584]

Roth IRAs: Eligibility Requirements | Investopedia

According to this, there is no age limitation. If I am reading that correctly, then your niece can set it up herself so long as she has a taxable income.

[moneybags]

The account can be in her name; custodial account is not needed. Retirement income is not included in financial aid calculations. I would choose the Roth over the traditional at her age (assuming her income will be low).