This is why I prefer to hold private equity in my Roth IRA

Private equity and venture capital can be tax-inefficient assets to hold in a taxable account — gains are often taxed with little ability to control timing.

Held inside a Roth IRA, by contrast, qualified growth has the potential to compound for decades without being taxed again on the way out.

A few things worth understanding before placing private investments in a Roth:

• Eligibility and contribution limits mean this is typically built over years — through backdoor Roth contributions or in-plan conversions — not a single move
• Illiquidity inside an IRA can complicate future required distributions and annual valuation/reporting
• Some private fund structures can generate Unrelated Business Taxable Income (UBTI) even inside a Roth, which is worth understanding before committing capital

Private markets have also changed — many of today's most valuable companies are staying private much longer than a generation ago, which makes this a more relevant conversation for more investors than it used to be.

Choosing where to hold an investment can be almost as important as choosing what to hold.