Roth, Traditional, or Taxable? Why Your Best Answer May Be 'Yes'
Tax diversification provides valuable control in retirement.
Note: This article is part of Morningstar's Tax Relief Week special report. A version of this article appeared on Feb. 14, 2013.
Although Roth IRAs have grown more popular since their introduction in 1999, just 8% of IRA holdings consist of Roth IRAs, according to Investment Company Institute data. The uptake of Roth 401(k)s has also moved fairly slowly. According to a 2009 Aon Hewitt survey, just 11% of 401(k) participants contribute to the Roth option.