Before you decide which type of account to choose, you should understand the differences.
Differences between Roth IRA and designated Roth Accounts
When you turn 70 ½ you will be required to take required minimum distributions from designated Roth accounts (e.g., self-directed 401k), nut not from Roth IRAs.
The rules do not permit the transfer of Roth IRAs to a Roth designated account like a self-directed Roth 401k; however, Roth designated accounts (e.g., Roth 401k) may be transferred to a Roth IRA. This method is commonly utilized to escape the RMD requirement. Therefore, make sure to transfer the Roth designated account to the Roth IRA before you reach age 70 ½ in order to avoid the required minimum distribution requirement.
Withdrawals from a Roth IRA or a designated Roth account, including earnings, will be tax-free if you:
Have held the account for at least 5 years, and
Age 59 ½ or older;
In addition, you can get tax-free distribution after 5 years from a Roth IRA of up to $10,000 to buy your first home.