Roth IRAs give you tax-free income in retirement. But they also have another important advantage over traditional IRAs and 401(k)s.
In the following video, Dan Caplinger, The Motley Fool's director of investment planning, talks about this hidden advantage of Roth IRAs. Dan notes that traditional IRAs and 401(k) force you to take distributions when you turn 70 1/2, whether you need them or not. Roth IRAs, on the other hand, have no such requirement, allowing you to choose whenyouwant to take your retirement income. Moreover, Dan points out that many people use Roth IRAs as estate-planning tools, giving their heirs the ability to earn tax-free income during theirlifetimes as well. Dan concludes that a Roth IRA is a powerful tool that you should strongly consider for your retirement needs.