Funding the account
There are two paths to funding a minor's self-directed IRA.
The most common is through annual contributions. A minor must have earned income, wages reported on a W-2 or self-employment income reported on a 1099, to make IRA contributions. The contribution cannot exceed the lesser of the annual IRA contribution limit or the minor's actual earned income for the year. A minor with a summer job, modeling income, or any other legitimate earned income qualifies.
The less common path is a rollover or transfer from an existing retirement plan already held by the minor. This is not typical, but it is available. If the minor already holds an IRA or eligible plan balance, those funds can be moved into a self-directed structure without an earned income requirement.
How administration works
The minor is the IRA account holder, the account belongs to them and is held in their name. Because minors cannot legally enter contracts, a parent or legal guardian serves as the authorized signer on the IRA account with IRA Resources for the duration of the minor's legal minority.
At the entity level, the same principle applies. The parent or guardian must be named as co-manager of the IRA LLC or co-trustee of the IRA Trust in order to execute investment transactions and sign documents on behalf of the plan. The minor may also be named, but the parent or guardian must be present as a co-signatory.
When the minor reaches the age of majority in their state, typically 18, control of the IRA account and the plan entity transfers fully to them. The parent or guardian's administrative role ends at that point.