This Is My Favorite Account for Building a Millionaire Retirement
If you're looking for the best retirement account for growing wealth, the Roth IRA and the lesser-known Roth 401(k) might be the best choices. There are restrictions on each type of account, so the best one for you is whichever is available. There are pros and cons to any type of retirement vehicle, so it's important to consider their advantages in the context of your personal circumstances. However, Roth features make them especially great for asset appreciation.
Roths are great vehicles for holding your growth investments. Roth IRAs rose to prominence following their creation in the late 1990s, and the Roth 401(k) has gained popularity in recent years after debuting in 2006.
Unlike a traditional 401(k) or IRA, a Roth doesn't provide any immediate tax advantages. Roth contributions are made "post-tax", meaning that taxpayers can't claim deductions from taxable income. However, they offer perks down the road when assets are distributed. There are no taxes incurred on the returns that accumulate within a Roth, and qualified distributions are untaxed if you're over age 59 1/2.
Source Fool.com
