What Is a Gold IRA?
How It Works

01 · What it is

A gold IRA — also called a precious metals IRA — is a self-directed individual retirement account that can hold IRS-approved physical precious metals (gold, silver, platinum, and palladium) rather than only stocks and funds.

"Self-directed" means the account can hold a wider range of assets than a typical brokerage IRA. The metals themselves are physical bars and coins, held in the account's name. A gold IRA can be set up as a Traditional or Roth IRA, and it follows the same IRS contribution and distribution rules as any other IRA of that type.

02 · How it works

The mechanics, in four steps

1. A custodian administers the account

   The account is held through an IRS-approved custodian, who administers it and handles the records the IRS requires.

2. Metals are kept at an approved depository

   The metals are stored at an IRS-approved depository. Physical metals held inside an IRA cannot be kept at home.

3. The account is funded

   Funding comes from an annual contribution, or from a rollover or transfer of an existing retirement account.

4. Eligible metals are purchased

   The custodian buys IRS-eligible metals that meet the required fineness standards.

03 · What you can hold

IRA-eligible metals and fineness standards

Not every coin or bar qualifies. To be held in an IRA, metals must meet the IRS's minimum fineness (purity) standards and be produced by an approved mint or refiner.

Eligible forms typically include certain government-minted coins (such as American Eagles and American Buffalos) and bars or rounds from accredited refiners. Collectible and rare "numismatic" coins generally are not eligible.

Eligibility rules are detailed and can change. Confirm a specific coin or bar's current IRS eligibility before any purchase.

04 · Funding the account

Contributions, rollovers, and transfers

A gold IRA can be funded three ways:

• Annual contribution — new money added within the IRS's annual contribution limits.
• Transfer — funds move directly from one IRA custodian to another (custodian-to-custodian); you don't take possession of the funds.
• Rollover — funds move from an eligible retirement account into the gold IRA. In an indirect rollover, the funds are paid to you and must be redeposited within the IRS's time window (generally 60 days) to remain within the account.

Funds are commonly moved from accounts such as a 401(k), 403(b), TSP, or another IRA (Traditional, SEP, or SIMPLE). Whether a given account is eligible depends on the source account and your circumstances; the custodian processes the paperwork.

05 · Who holds what

Custodians and depositories

Two parties handle a gold IRA:

• The custodian administers the account — opening it, processing contributions and rollovers, keeping records, and arranging purchases and sales under the IRS's rules.
• The depository stores the metals — an IRS-approved facility that holds the physical bars and coins.

Storage is usually offered as segregated (your metals kept separately and identifiable as yours) or commingled (held alongside other account holders' like metals). Physical metals in an IRA cannot be stored at home or in a personal safe deposit box; the IRS requires an approved depository. Arrangements marketed as "home storage" or "checkbook" gold IRAs carry IRS compliance risk — confirm any structure with a qualified professional before relying on it.

06 · What it costs

Typical fees and costs

A gold IRA generally involves more fees than a standard brokerage IRA, because physical metals must be stored and administered. Common charges include:

• Setup

  A one-time fee to open the account.

• Custodian

  An annual administration fee for recordkeeping and account maintenance.

• Storage

  Charged by the depository, sometimes scaled to the value or weight held.

• Metal pricing

  The difference (spread) between a metal's spot price and the price charged when buying or selling.

• Transfers

  Wire or transaction fees for moving funds or processing trades.

Fee structures vary by custodian and depository. Ask for a full written fee schedule before opening an account.

07 · The rules

Contribution and distribution rules

A gold IRA follows the same IRS rules as any IRA:

• Contribution limits — annual limits set by the IRS apply, the same as other IRAs.
• Distributions — funds or metals generally can be withdrawn beginning at the IRS's qualifying age; earlier withdrawals may incur penalties.
• Required distributions — Traditional-type accounts are subject to age-based required minimum distributions.
• In-kind or cash — when taking a distribution, you can generally receive the physical metal shipped to you (in-kind), or have it sold and receive cash.

Specific limits, ages, and penalty rules are set by the IRS and change over time. Confirm the current figures with a qualified professional.

08 · A common question

IRA metals vs. metals you hold yourself

Metals held inside an IRA and metals you buy and keep personally are handled differently — not as a matter of which is preferable, but mechanically:

• Title

  IRA metals are held in the account's name through the custodian; personally held metals are titled to you directly.

• Storage

  IRA metals must sit at an approved depository; personally held metals you store yourself.

• Access

  Reaching IRA metals means taking a distribution; personally held metals you can access at any time.

• Account rules

  IRA metals are subject to IRA contribution and distribution rules; personally held metals are not held within any retirement account.

This describes how each is handled. It is not a recommendation of one over the other.

09 · FAQ

Frequently asked questions