Investing in a Roth IRA offers unique advantages, particularly for those looking to grow their wealth tax-free over the long term. When it comes to selecting stocks for a Roth IRA, certain criteria make some options more favorable than others.

As with any investment, inherent stability and market viability are king when it comes to selecting stocks for a Roth IRA. However, additional considerations include income generation and long-term growth potential compared to peers. Dividend stocks are great, but distribution income adds up fast when your annual tax bill comes due. Likewise, Roth IRAs are long-term “buy and hold” accounts, so you can afford to take some risks in companies that may grow faster and larger than the overall market.

Each of these three stocks represents one of those core tenets – growth or income – and are top picks if you’re looking for stocks to buy for tax-free growth.

Palantir (PLTR)

Palantir (NYSE:PLTR) founder Peter Thiel is a Roth IRA mastermind, and while your account might not match his $5 billion net egg, Palantir is the perfect stock for long-term gains.

Palantir’s four consecutive periods of profitability, bolstered by a surge in corporate and government contracts, point to a permanent pivot point for the company to explode long-term. These contracts reinforce its standing as a leader in data analytics, AI integration, and predictive forecasting. With that fourth profitable quarter, Palantir meets all the criteria for inclusion in the S&P 500. Its market capitalization already surpasses nearly 300 companies in the index, boding well for its potential to grow within Roth IRA. If Palantir achieves its S&P 500 inclusion goal in 2024, significant momentum will propel the stock forward as more institutional investors recognize its long-term potential.

Palantir’s one missing ingredient for perfect Roth IRA parameters is its lack of dividends. But, after years of stock-based comp diluting shareholders, we can likely expect its comprehensive buyback program to more than compensate for the lack of distributions.

Realty Income (O)

REIT income taxation is tricky, making most REITs perfect for a Roth IRA. And few REITs top income Realty Income’s (NYSE:O) pure distribution power.

The company distributes dividends to investors on a monthly basis, making it a prime opportunity to execute dollar-cost averaging over the span of years as part of a dividend reinvestment plan. And, today, Realty Income is woefully underpriced – making it a top stock to buy for tax-free growth.

Realty Income is marking new growth inroads, too, with its just-closed Spirit Realty Capital acquisition, opening new markets alongside new income opportunities. But aside from growth prospects, the company’s latest earnings report reveals an upside that is not immediately obvious from its per-share price. Despite a slight decrease in occupancy rates, an impressive 98.8% of Realty Income’s properties continue to generate cash flow for shareholders.

Moreover, the company has improved its profit margins from these properties, raising its funds from operations to $1.04 per share, up from $0.97 in 2022. The company’s active acquisition strategy also indicates a potential for ongoing growth.

Currently offering a dividend yield of about 5.5%, Realty Income stands out as an attractive option for investors seeking steady gains within their Roth IRA.

AST SpaceMobile (ASTS)

Few assets offer better long-term growth potential within a Roth IRA than small-caps, and AST SpaceMobile (NASDAQ:ASTS) is positioned to capture both small-cap upside and a piece of the burgeoning $1 trillion space sector. Best yet, a unique combination of factors forced per-share pricing down this month while simultaneously representing a massive long-term opportunity.

Last week, ASTS announced a strategic investment of $206.5 million. This marks a significant step in propelling the space stock’s growth plans as it rolls out its satellite-to-cell service coverage. The investment package includes convertible notes and non-dilutive purchases coupled with a planned credit withdrawal. Significantly, one of ASTS’ new funding partners is Google (NASDAQ:GOOG, NASDAQ:GOOGL). In the current investment climate, companies like Google are cautious about investing in tech startups, particularly those in pre-revenue stages like ASTS. Google’s backing positions ASTS as a key player in the space industry moving forward.

But, like I said, there’s a pricing downside. Alongside this strategic investment, which avoids dilutive measures, ASTS is launching a $100 million public stock offering. While this equity offering will inject much-needed funds to launch ASTS’ commercial offerings, it also dilutes the value for existing retail shareholders waiting patiently.

But our Roth IRA is ready for long-term accumulation and growth. Patience will reward ASTS investors, and few vehicles are as patient as a well-managed Roth IRA.

On the date of publication, Jeremy Flint held no positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.