Precious Metals IRA Guide
A Precious Metals IRA is a self-directed Individual Retirement Account that holds IRS-approved physical gold, silver, platinum, or palladium. These metals must meet specific fineness standards (.995+ for gold, .999+ for silver) and be stored with an approved custodian or depository—never at home. It follows all traditional IRA rules for contributions, distributions, and taxes.
Quick Start: How It Works
Choose a Custodian
Select an IRS-approved self-directed IRA custodian that specializes in precious metals.
Fund Your Account
Transfer from existing IRA, rollover from 401(k), or make new contributions.
Select Eligible Metals
Choose IRS-approved gold, silver, platinum, or palladium products.
Ship to Depository
Metals are shipped directly to an approved third-party depository.
Manage & Monitor
Receive statements, manage holdings, and plan distributions.
What You'll Need
- Current retirement account information (if transferring/rolling over)
- Chosen custodian name and application
- Estimated investment amount
- Target timeframe for setup (typically 2-4 weeks)
Eligibility & IRS Rules
Allowed Metals
The IRS permits specific precious metals in self-directed IRAs under Internal Revenue Code Section 408(m). Eligible metals must meet minimum fineness requirements: gold at .995+, silver at .999+, and platinum and palladium at .9995+. Certain coins are specifically permitted by statute, including American Eagle coins (gold, silver, platinum), Canadian Maple Leafs, Austrian Philharmonics, and Australian Kangaroos. Your IRA custodian makes final eligibility determinations.[1]
Not Allowed
IRAs cannot hold collectibles, including rare or numismatic coins that derive value from factors beyond metal content. Most foreign coins, graded coins, and any metals failing to meet fineness standards are prohibited. Personal jewelry, art, or other tangible personal property cannot be held in an IRA.
Prohibited Transactions
The IRS strictly prohibits certain transactions between your IRA and "disqualified persons," which include yourself, your spouse, lineal descendants and ancestors, and entities you control. You cannot personally use, store, or take possession of IRA metals. Doing so triggers immediate taxation and penalties. All metals must remain with the custodian or approved depository.[2]
Rollover vs. Transfer
Direct Transfer (Trustee-to-Trustee)
The cleanest method moves funds directly between custodians without you touching the money. No time limits, no withholding, unlimited frequency. The sending custodian wires or mails funds directly to your new precious metals IRA custodian. This avoids all rollover restrictions and is generally recommended for IRA-to-IRA moves.
60-Day Rollover
You receive a distribution check and have 60 days to deposit it into another IRA. Limited to one rollover per 12-month period across all your IRAs. If from a 401(k), 20% is withheld for taxes (you must replace this from personal funds to avoid taxation). Missing the 60-day deadline makes the entire amount taxable income.[3]
Decision Helper
Contributions & RMD Basics
Annual Contribution Limits
For 2025, you can contribute up to $7,000 ($8,000 if 50+) to all your Traditional and Roth IRAs combined. These limits apply whether you invest in stocks, bonds, or precious metals. Contributions must be in cash—you cannot contribute physical metals directly. Income limits may affect Roth IRA eligibility.
Required Minimum Distributions (RMDs)
Traditional precious metals IRAs require RMDs starting at age 73. Your first RMD can be delayed until April 1 of the year after you turn 73, but subsequent RMDs must be taken by December 31 each year. Roth IRAs have no RMDs during your lifetime.[4]
Distribution Options
When taking distributions, you can choose cash (custodian sells metals and sends proceeds) or in-kind distribution (physical metals shipped to you). In-kind distributions are taxed at the metals' fair market value on distribution date. Traditional IRA distributions are taxed as ordinary income; qualified Roth distributions are tax-free.
Storage & Security
Approved Depository Custody
IRS regulations require precious metals IRAs to use approved third-party depositories. Major depositories include Delaware Depository, Brink's Global Services, International Depository Services, and HSBC Bank USA. These facilities offer bank-level security with armed guards, 24/7 monitoring, insurance coverage, and regular audits. Your custodian arranges depository relationships and logistics.
Storage Options
Insurance & Auditing
Approved depositories maintain comprehensive insurance through Lloyd's of London or similar insurers, typically covering full market value. Annual third-party audits verify holdings. You receive regular statements showing your metals' location, quantity, and current market value.
Costs & Fees Checklist
Common Fee Categories
Questions to Ask Providers
- Are fees flat-rate or percentage-based on account value?
- Do storage fees vary by metal type or value?
- What's included in the setup fee vs. ongoing charges?
- Are there penalties for early account closure?
- How are dealer spreads calculated and disclosed?
- Are there minimum purchase requirements or account balances?
Risks & Considerations
Price Volatility
Precious metals prices fluctuate based on global economic conditions, currency movements, industrial demand, and investor sentiment. Gold and silver can experience significant short-term price swings. Unlike dividend-paying stocks or interest-bearing bonds, metals generate no income while held.
Liquidity & Spreads
While precious metals are generally liquid, selling requires finding a buyer at current market prices. Dealer bid-ask spreads typically range from 2-5% for common products, higher for less common items. During market stress, spreads may widen significantly.
Storage & Insurance Costs
Annual storage and insurance fees reduce net returns. These ongoing costs apply regardless of metal performance. Over long holding periods, cumulative fees can be substantial compared to low-cost index funds or ETFs.
Prohibited Transaction Risk
Violating IRS rules—such as personally using IRA metals or dealing with disqualified persons—disqualifies the entire IRA. This triggers immediate taxation of the full account value plus potential penalties. Complex rules require careful compliance.
Administrative Complexity
Precious metals IRAs involve more paperwork and coordination than traditional IRAs. You must work with custodians, dealers, and depositories. Transfers, rollovers, and distributions require careful timing and documentation.
Frequently Asked Questions
No, storing IRA precious metals at home violates IRS regulations and disqualifies the IRA, triggering immediate taxation and penalties. Despite online claims about LLC structures or "checkbook IRAs" enabling home storage, the IRS requires all IRA assets be held by an approved custodian or trustee. Metals must be stored at an IRS-approved depository. Taking personal possession before a proper distribution makes it a prohibited transaction, resulting in the entire IRA being treated as distributed. Learn more about approved storage
The IRS permits gold (.995+ fine), silver (.999+ fine), platinum (.9995+ fine), and palladium (.9995+ fine) in IRAs. Specific coins are allowed by statute regardless of fineness, including American Eagles, Canadian Maple Leafs, Austrian Philharmonics, and Australian Kangaroos. Bars and rounds from approved refiners meeting fineness standards also qualify. Collectibles, numismatics, and rare coins are prohibited. Your custodian makes final eligibility determinations based on current IRS guidance. See eligible metals list
Required Minimum Distributions from precious metals IRAs work like traditional IRAs, starting at age 73. You can take RMDs as cash (custodian sells metals and sends proceeds) or in-kind distributions (physical metals shipped to you valued at current market price). Most people choose cash to avoid shipping costs and simplify tax reporting. The RMD amount is calculated using IRS life expectancy tables applied to your December 31 account value. Read about RMD rules
Yes, you can take in-kind distributions of physical metals after age 59½ without the 10% early withdrawal penalty. The distribution is taxed at the metals' fair market value on the distribution date. With Traditional IRAs, you'll owe ordinary income tax; qualified Roth IRA distributions are tax-free. The custodian arranges secure shipping to your address. Alternatively, you can sell the metals and take cash distributions. Learn about distributions
A direct transfer moves funds between IRA custodians without you touching the money—no time limits, no taxes withheld, unlimited frequency. A rollover means you receive the funds and have 60 days to deposit them in another IRA, limited to one per 12-month period across all your IRAs. Employer plan rollovers withhold 20% for taxes unless done as a direct rollover. Transfers are generally safer and simpler for IRA-to-IRA moves. Compare transfer vs rollover
No, numismatic and collectible coins are prohibited in IRAs. The IRS only allows bullion coins and bars meeting specific fineness requirements, plus certain coins specifically permitted by law (like American Eagles). Coins valued for rarity, condition, or collectibility rather than metal content cannot be held in an IRA. Proof coins and graded coins typically don't qualify unless they meet standard bullion requirements and aren't purchased at collectible premiums. View IRS rules
Congress specifically authorized American Eagle gold and silver coins for IRA investment through legislation, overriding normal fineness requirements. Gold Eagles are .9167 fine (22 karat) and Silver Eagles are .999 fine. This statutory exception recognizes Eagles as official U.S. legal tender coins backed by the government. Similarly, American Buffalo gold coins (.9999 fine) and American Eagle Platinum coins are IRA-eligible by specific authorization. See all eligible coins
Expect custodian setup fees ($50-$300), annual administration fees ($75-$300), storage fees ($100-$300/year for segregated, less for commingled), transaction fees for buying/selling, and dealer spreads (2-5% typically). Some custodians charge percentage-based fees on account value instead of flat rates. Wire transfer, distribution, and account closure fees may apply. Compare all-in costs across providers, as fee structures vary significantly. Ask whether storage fees increase with account value. Review fee checklist
Yes, both Traditional and Roth IRAs can hold precious metals if structured as self-directed accounts with appropriate custodians. Roth IRAs offer tax-free qualified distributions after age 59½ and five years of account ownership, with no RMDs during your lifetime. Traditional IRAs provide upfront tax deductions but taxable distributions. The same IRS rules for eligible metals, storage requirements, and prohibited transactions apply to both account types. Compare IRA types
Account setup typically takes 2-4 weeks total. Opening the self-directed IRA with a custodian takes 1-3 business days. Funding via transfer or rollover takes 5-10 business days depending on your current custodian's processing. Purchasing metals and arranging depository storage adds 3-7 business days. Direct transfers are usually faster than rollovers. Having all paperwork ready and choosing common products speeds the process. Some dealers offer expedited setup for time-sensitive situations. View setup steps
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