Gold IRAs
What Is a Gold IRA? How It Works, What It Costs, and the Rules
A gold IRA is an ordinary individual retirement account with one twist: it holds physical metal instead of stocks or funds. That twist brings in a custodian and a depository alongside the dealer, plus IRS rules on which metals qualify and how money can get in.
Five things to know first
- It's a self-directed IRA, and it follows the same basic tax rules as any other IRA.
- You'll usually deal with three businesses: a dealer that sells the metal, a custodian that runs the account, and a depository that stores the metal.
- The IRS sets purity standards, and most collectible coins don't make the cut.
- IRA gold can't live in your house. It stays with an approved custodian or depository until it leaves the IRA.
- Most people fund one by moving money over from an existing 401(k) or IRA.
What is a gold IRA?
An IRA is a tax-advantaged account for retirement savings, and the ones most of us have hold stocks, bonds, mutual funds, or cash, picked from whatever menu the bank or brokerage offers. A gold IRA holds physical precious metals, like coins or bars, inside the very same kind of account.
Gold doesn't change the tax rules. A traditional gold IRA is a traditional IRA, and a Roth gold IRA is a Roth IRA, so contributions, rollovers, withdrawals, and required minimum distributions all work the way they would anywhere else.
The name undersells it a little. Most of these accounts can also hold silver, platinum, and palladium; people just say "gold IRA" because gold is what they're buying.
Why it has to be "self-directed"
Most banks won't touch physical metal. Neither will most brokerages. To own gold, you need a self-directed IRA, which is simply an IRA whose custodian allows a wider range of assets, precious metals included.
"Self-directed" means you pick what goes in. The custodian holds the account and does the paperwork. It won't choose your investments or advise you on them.
Who are the three parties in a gold IRA?
At a brokerage, one company seems to do everything. Not here. Gold IRAs usually split the work among three separate businesses, and once you know who's who, the fees make sense and you'll know who to call.
| Party | What they do | How they get paid |
|---|---|---|
| Dealer (the "gold IRA company") | Sells you the metal, helps with paperwork, and frequently buys it back later | The difference between what you pay and the market price of the metal (the "spread" or markup) |
| Custodian | Holds the IRA, keeps records, sends tax forms, and reports to the IRS | Setup fees and yearly account fees |
| Depository | Stores and insures the physical metal in a secure vault | Yearly storage fees, frequently billed through the custodian |
The company in the ads is usually the dealer. That's who you'll talk to first, and it'll often recommend a custodian and depository it already works with. In most cases you can ask for different ones, and we think it's smart to at least ask what your options are.
Who can be a custodian?
The list is short. An IRA custodian has to be a bank, a federally insured credit union, or another business the IRS has approved as a nonbank trustee. Ask any custodian you're weighing how it qualifies; a real one answers that in a sentence.
Which metals can go in a gold IRA?
Collectibles are mostly banned from IRAs. Buy one with IRA money and the IRS treats it as a withdrawal, with the taxes and penalties that come with that. Precious metals get an exception, but only when they meet specific standards.
For bullion (bars and rounds), the IRS sets minimum purity, also called fineness:
- Gold: at least .995 fine (99.5% pure)
- Silver: at least .999 fine
- Platinum and palladium: at least .9995 fine
Custodians generally also expect bars to come from an accredited refiner or national mint, and they'll check.
The American Gold Eagle exception
Here's an odd one. The American Gold Eagle is only about 91.67% gold (22 karat), which falls short of the .995 standard, yet it's allowed anyway because the tax code names certain U.S. Mint coins outright. Plenty of other bullion coins, such as the Canadian Gold Maple Leaf, clear .995 on their own.
What doesn't qualify
Rare coins don't. Older coins prized for their history or condition don't, and neither do most "collectible" coins or any jewelry. If a salesperson calls a coin IRA-eligible, have the custodian confirm it before you pay. Our guide to coins vs. bullion explains why this matters for cost as much as for eligibility.
Can I keep my IRA gold at home?
No.
IRA metal has to be held by the custodian or an approved depository. Take personal possession of it and the IRS can treat that as a distribution. In a traditional IRA, the value becomes taxable income, and if you're under 59½ a 10% additional tax can apply on top.
You'll see ads for "home storage gold IRAs," or setups that run the metal through an LLC so you can keep it yourself, and these arrangements carry serious tax risk. Courts have ruled against taxpayers who used them. Want gold you can hold in your hand? Buy it with money outside your IRA.
How does money get into a gold IRA?
There are three routes. The first two are the common ones.
1. A direct transfer from another IRA
Your current IRA custodian sends the money straight to the new gold IRA custodian, you never touch it, and because it doesn't pass through your hands, a direct transfer isn't taxed and there's no limit on how often you can do one.
2. A rollover from a 401(k) or similar plan
Got a 401(k), 403(b), or similar plan from a former employer? You can usually roll it into an IRA. A direct rollover, where the plan pays the new custodian, is the clean way to do it.
An indirect rollover is where people get hurt. The plan mails you a check, withholds 20% for taxes, and starts a 60-day clock for you to deposit the full amount in the new IRA. Miss it, and the money can become taxable. You're also limited to one indirect IRA-to-IRA rollover in any 12-month period.
Say you're 60 and left a job last spring, and your old 401(k) is sitting at your former employer, so you ask the plan for a direct rollover to the gold IRA custodian, which skips the withholding and the deadline completely. We'd pick that route. Every time. Still working there? Your plan might not allow a rollover while you're employed, so ask your plan administrator; rules differ. Our guide on rollovers vs. transfers goes through it step by step.
3. A new contribution
You can put fresh money into a gold IRA the same way you would any IRA. Annual limits apply. They're adjusted frequently. Anyone 50 or older gets an extra "catch-up" amount on top. Check the current numbers on the IRS contribution limits page before you send anything.
Traditional or Roth gold IRA?
Gold fits in either. Which one you end up with depends mostly on where the money's coming from.
| Traditional gold IRA | Roth gold IRA | |
|---|---|---|
| Usually funded from | Traditional 401(k) or traditional IRA | Roth 401(k) or Roth IRA |
| Taxes on withdrawals | Generally taxed as ordinary income | Qualified withdrawals are tax-free |
| Required minimum distributions | Yes, starting at the age the IRS sets for you | No RMDs for the original owner |
Money keeps its type when it moves. Traditional 401(k) dollars land in a traditional IRA; Roth dollars land in a Roth IRA. You can convert traditional money to Roth, but you'll owe income tax on whatever you convert, so talk with a tax professional first.
Required minimum distributions bite harder with gold than with stocks. To meet one, you might have to sell metal or take coins out of the account, and our guide to selling gold or taking it out of an IRA shows how that works.
What does it cost, and is it right for you?
It costs more. A gold IRA is pricier to own than an IRA full of index funds. Expect a setup fee, a yearly custodian fee, a yearly storage fee, and the dealer's markup when you buy, and that markup is frequently the biggest single cost of all. Our line-by-line fee guide runs through each one with examples.
Whether that's worth paying depends on your savings and timeline, and on how much price movement you can stomach. Gold can rise and fall sharply, and it pays no interest or dividends while you wait. It also takes more steps to set up and to sell than a regular IRA does.
Some people want gold as a small slice of a broader mix, and that's a reasonable use. Others would be better off keeping things simple. If you're on the fence, read our guide to when a gold IRA is not a good fit, or take the short quiz below.
Common questions
Is a gold IRA a special kind of account in the tax code?
No. It's a regular traditional or Roth IRA that happens to hold physical metal, and it follows the same tax rules as any other IRA of that type.
Can I move part of my 401(k) into a gold IRA and leave the rest?
Yes, if your plan allows rollovers. Lots of people move only a portion. Ask your plan administrator what's allowed, especially if you still work there.
Do I own the gold, or does the company?
Your IRA owns the metal, and you own the IRA. The custodian holds it for you and the depository stores it. Your statements should show exactly what the account holds.
Can I add silver or platinum to the same account?
In most cases, yes. Silver, platinum, and palladium can sit in the same account as long as they meet the IRS purity standards and your custodian accepts them.
Where can I check the rules for my own situation?
The IRS explains IRA rules in Publication 590-A (contributions) and Publication 590-B (distributions). A tax professional can help you apply them to your own case.
We base our guides on primary sources such as the IRS, the Department of Labor, and federal regulators. Read our editorial policy. Spot an error? Tell us.
