Yes, you can hold gold in an IRA, but only through a self-directed IRA that uses an approved custodian, and only if the gold meets the IRS purity standard of 0.995 fineness or is one of a short list of coins Congress carved out by statute. Home storage is not allowed. Break either rule and the IRS can treat the whole account as distributed, which means income tax on the full balance and a 10% penalty if you are under 59½.
The Account You Need
A standard brokerage IRA will not hold physical metal. You need a self-directed IRA (SDIRA), which lets the account owner direct a custodian to buy alternative assets, including precious metals. Traditional, Roth, SEP, and SIMPLE IRAs can all be set up in a self-directed structure.
You cannot serve as your own trustee. Under IRC Section 408(a)(2), the trustee must be a bank or another entity that has demonstrated to the IRS that it can administer the account properly.1Office of the Law Revision Counsel. 26 U.S. Code 408 – Individual Retirement Accounts Specialized custodians handle the paperwork, statements, and coordination with the depository, but they do not pick metals or give investment advice.
Annual contribution limits still apply. For 2026, that is $7,500, with an extra $1,100 catch-up if you are 50 or older.2Internal Revenue Service. 401(k) Limit Increases to $24,500 for 2026, IRA Limit Increases to $7,500 Because a single bar of gold often costs more than a year’s contribution, most gold IRAs are funded by rolling over an existing retirement account.
What Gold Qualifies
The general rule under IRC Section 408(m) treats metals in an IRA as collectibles, and buying a collectible with IRA money is a taxable distribution. Section 408(m)(3) creates the exception: bullion qualifies if its fineness meets or exceeds the minimum required for delivery on a regulated futures contract market.3Office of the Law Revision Counsel. 26 U.S.C. 408 – Individual Retirement Accounts – Section: Investment in Collectibles Treated as Distributions For gold, the CME Group’s COMEX exchange sets that floor at 0.995 fineness, or 99.5% pure.4CME Group. Chapter 113 Gold Futures Silver, platinum, and palladium have their own thresholds under the same COMEX rules.5CME Group. Precious Metals Physical Delivery Process Bars must come from a national mint or an accredited refiner.
The statute also carves out specific government-minted coins even when their purity is lower. American Eagle gold coins are 22-karat (91.67% pure), well under the 0.995 floor, but Congress listed them in the exception under 31 U.S.C. Section 5112(a).3Office of the Law Revision Counsel. 26 U.S.C. 408 – Individual Retirement Accounts – Section: Investment in Collectibles Treated as Distributions American Eagle silver and platinum coins get the same treatment, as do coins minted under the laws of a U.S. state. The Canadian Maple Leaf (0.9999 fine) qualifies on purity. Jewelry, rare numismatic coins, and collectible pieces do not.
If your IRA buys gold that misses both tests, the IRS treats the purchase as a distribution equal to the cost. You owe income tax on that amount plus the 10% early withdrawal penalty if you are under 59½.6Internal Revenue Service. Hardships, Early Withdrawals and Loans The South African Krugerrand is a useful example. It is the same 91.67% pure as an American Eagle but lacks the statutory listing, so it is out.
Where the Gold Has to Sit
The physical metal must stay with the trustee or an IRS-approved depository. Not your house. Not a personal safe. Not a safe deposit box under your name. The IRS states this directly: the collectibles exception applies only when the metal is held by a bank or IRS-approved nonbank trustee, and storing IRA gold at home (including through an IRA-owned LLC) is a distribution.7Internal Revenue Service. Retirement Plans FAQs Regarding IRAs – Section: Investments
At the depository, you usually pick between commingled storage, where your metal is pooled with other investors’ holdings of the same type, and segregated storage, where your specific bars or coins are kept apart. Segregated costs more, but you get back the exact items you bought when you take a distribution.
Funding the Account and Buying the Gold
Three ways to put money in: a direct rollover from an employer plan such as a 401(k), 403(b), or 457(b); a trustee-to-trustee transfer from another IRA; or annual contributions. Direct rollovers and transfers move funds institution to institution, so nothing is withheld and the 60-day rollover clock never starts.8Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions – Section: How Do I Complete a Rollover?
If you take a distribution check yourself (an indirect rollover), you have 60 days to redeposit it, and you can only do one indirect IRA rollover in any 12-month period across all your IRAs. Trustee-to-trustee transfers are not subject to that limit.9Internal Revenue Service. Rollovers of Retirement Plan and IRA Distributions If you are still working and want to move money out of your current employer’s 401(k), check whether the plan allows in-service distributions. Many do not.
Once the account is funded, the purchase moves through a fixed chain. You sign a buy direction letter identifying the coins or bars. Your custodian sends payment from the IRA to the dealer. The dealer ships the metal directly to the approved depository. The depository confirms receipt, and the custodian updates your account. The gold cannot pass through your hands at any point. If it does, the IRS treats it as a distribution.7Internal Revenue Service. Retirement Plans FAQs Regarding IRAs – Section: Investments
What It Costs
A gold IRA carries fees a standard brokerage IRA does not:
- A one-time custodian setup fee, commonly $50 to $300.
- An annual maintenance fee that varies by custodian.
- A storage fee from the depository, often calculated on the value of the metal. Segregated storage costs more than commingled.
- A dealer markup, or spread, over the spot price of gold. For standard bullion this typically runs about 1% to 10%.
The markup matters more than it looks. Your first statement will show a value below what you paid because the spread already came out. Gold has to climb by at least that spread before you break even. Markups well above 10%, particularly on products pitched as “semi-numismatic” or “rare,” are a common warning sign of predatory sales.
What Can Blow Up the Account
Self-directed IRAs give you more room to invest and more room to trip a wire. A prohibited transaction is any deal between your IRA and a “disqualified person,” which includes you, your spouse, your parents, your children, their spouses, and any fiduciary of the account.10Internal Revenue Service. Retirement Topics – Prohibited Transactions In a gold IRA that typically means:
- Buying gold from, or selling gold to, yourself or a family member.
- Storing the metal at home or in a facility you control.
- Pledging the gold as collateral for a personal loan.
- Using or benefiting from the metal before taking a distribution.
The penalty is not limited to the transaction. If a disqualified person engages in a prohibited transaction, the IRA loses its tax-exempt status as of the first day of that tax year, and the entire fair market value of the account is treated as distributed on that date. Income tax on the whole balance, plus the 10% penalty if you are under 59½.11Office of the Law Revision Counsel. 26 U.S. Code 408 – Individual Retirement Accounts – Section: Loss of Exemption Where Employee Engages in Prohibited Transaction
Getting the Money (or the Gold) Back Out
When you take a distribution, you can sell the gold and take cash, or take the metal itself as an in-kind distribution. Tax treatment follows the account type. Traditional, SEP, and SIMPLE IRA distributions are taxed as ordinary income at your marginal rate, not the 28% collectibles rate that applies to gold held outside a retirement account. Distributions before 59½ carry the 10% early withdrawal penalty unless an exception applies.12Internal Revenue Service. Topic No. 558, Additional Tax on Early Distributions From Retirement Plans Other Than IRAs Roth contributions come out anytime tax- and penalty-free; earnings are tax-free once the account has been open five years and you are 59½ or older.
Required minimum distributions from a traditional, SEP, or SIMPLE gold IRA begin at age 73, or 75 if you were born in 1960 or later. The RMD is your prior-year December 31 balance divided by an IRS life expectancy factor.13Internal Revenue Service. Retirement Plan and IRA Required Minimum Distributions FAQs Roth IRAs do not have RMDs during the owner’s lifetime.
RMDs get awkward when the account holds only metal. You either sell some gold to raise the cash or take an in-kind distribution equal to the RMD amount, and either move takes coordination between the custodian, the dealer, and the depository. Start well before the deadline. Missing an RMD triggers a 25% excise tax on the amount you should have taken.