05 Dec How can I give a Roth IRA to my two adult children?

Q. I wanted to give a Roth IRA to my two adult children as a Christmas present. What’s the best way to do this?
— Mom

A. That is an excellent idea.

There are several ways you can arrange this generous gift.

You could give the money to them, and they can make the investment into a Roth IRA assuming they qualify, said Jody D’Agostini, a certified financial planner with The Falcon Financial Group in Morristown.

The limit to contribute to a Roth IRA is $7,000 for 2025 for under 50, and $8,000 for those age 50 and older, she said. It must be deposited by April 16, 2026, or the date on which they file their tax return.

“They will need to have earned income of at least these amounts which include salary, wages, tips or any 1099 income,” D’Agostini said. “Also, there is a phase out for incomes of $150,000 for a single and $236,000 for a married individual.”

You can also give the money to them to deposit in their checking accounts, and from there, they can contribute to the Roth IRA, she said.

“The gifting limit for 2025 is $19,000, so it is well below the threshold. If they do not already have a Roth IRA, they will need to open one themselves as you cannot open an account in their name,” she said.

Some custodians allow you to send a check or transfer money directly to their established account via a “third party contribution,” she noted.

If you are sending a check, be sure to label the tax year, account registration name and number, she said.

But before you do that, be sure that your children haven’t already funded an IRA on their own and that they meet the income eligibility requirements.

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This story was originally published in December 2025.

NJMoneyHelp.com presents certain general financial planning principles and advice, but should never be viewed as a substitute for obtaining advice from a personal professional advisor who understands your unique individual circumstances.