Best Assets For A Retirement Account: Financial News - Yahoo! Finance

Best Assets For A Retirement Account: Financial News - Yahoo! Finance: "Capital gains distributions can generate tax bills. And some of those profits may be highly taxed short-term gains. But you won't have to pay cap-gains tax as long as the earnings stay inside the account. (You will have to pay income tax on assets removed from the retirement account later on.)
Mutual funds holding small-company stocks also often work best inside a retirement plan, Cordaro says. They may trade actively and generate gains for shareholders that are taxable if not held inside a tax-deferred account."