Children who have earned income qualify to open a regular IRA or a Roth IRA.

Children who work part-time and have earned income during the year qualify to open a regular IRA or Roth IRA. Parents can contribute the $5,500 as a gift as long as the child has at least $5,500 in earned income that same year. A Roth IRA is more tax-efficient than a regular IRA if the child does not have taxable income.