A gold IRA is a self-directed individual retirement account that holds physical precious metals. The tax code allows only certain coins – such as American Gold and Silver Eagles – and bullion that meets minimum fineness standards, and the metal must be held by a bank or IRS-approved trustee. If you take the metal home yourself, the IRS treats it as a distribution, which can mean income tax and penalties.
How a gold IRA works
Ordinary IRAs at brokerages hold stocks, bonds and funds. To hold physical metal you need a self-directed IRA with a custodian that accepts it. Three parties are usually involved: the custodian, which administers the account and files IRS reports; a depository, which stores the metal; and a dealer, which sells the metal to the IRA. The account can be a traditional IRA or a Roth IRA.
- Contributions. For 2026 the IRA contribution limit is $7,500, or $8,600 if you are 50 or older. The limit applies across all your IRAs combined.
- Transfers and rollovers. Many people fund a gold IRA by moving money from an existing IRA or a former employer’s 401(k). A direct trustee-to-trustee transfer avoids withholding; with an indirect IRA-to-IRA rollover you have 60 days to redeposit, and only one such rollover is allowed in any 12-month period.
- Purchases. The custodian pays the dealer from the IRA’s cash, and the metal is shipped straight to the depository.
Which metals qualify
Section 408(m) of the tax code treats most coins and metals as collectibles, and an IRA that buys a collectible is treated as making a distribution of its cost. The law makes exceptions for:
- Gold, silver and platinum coins minted by the US Treasury under 31 U.S.C. 5112, such as the American Gold Eagle, American Gold Buffalo, American Silver Eagle and American Platinum Eagle;
- Coins issued under the laws of a US state;
- Gold, silver, platinum and palladium bullion that meets the minimum fineness required for delivery against a regulated futures contract, held by a qualifying trustee. In practice custodians apply standards of .995 for gold and .999 for silver.
| Product | Typically allowed in a gold IRA? |
|---|---|
| American Gold Eagle (22 karat) | Yes – named in the statute despite its lower fineness |
| American Gold Buffalo, Canadian Maple Leaf (.9999) | Yes |
| Gold bars of .995+ from accredited refiners | Yes |
| South African Krugerrand, British Sovereign (.9167) | No – below the bullion fineness standard |
| Rare, numismatic and pre-1933 US gold coins | No – collectibles |
Current prices for eligible coins and bars at US dealers are on our US gold prices and US silver prices pages.
The storage rule: no gold at home
IRS Publication 590-B is explicit that if the IRA owner takes possession of the coins, they are treated as distributed. In McNulty v. Commissioner (2021), the Tax Court held that an IRA owner who kept American Eagles bought through her IRA’s LLC in a home safe had received taxable distributions equal to their cost, and penalties applied. Pitches for “home storage” gold IRAs rely on structures like the one the court rejected.
Depositories offer commingled storage, where your account owns a quantity of identical items, or segregated storage, where specific coins or bars are set aside for you at a higher fee.
How withdrawals are taxed
- Traditional IRA. Withdrawals are taxed as ordinary income, not at the 28% collectibles rate. Withdrawals before age 59½ generally also incur a 10% additional tax unless an exception applies.
- Roth IRA. Qualified distributions are tax-free.
- Required minimum distributions. Traditional IRA owners must start taking distributions at age 73 under current law. With metals, you either sell enough to raise cash or take coins or bars out in kind, which are taxed at their fair market value on the day of distribution.
- Sales inside the IRA are not taxed when they happen.
Costs to compare
A gold IRA usually costs more to run than a standard IRA. Typical charges include an account set-up fee, an annual custodian fee, annual storage and insurance, and the dealer’s premium over the spot price when you buy and its spread when you sell. Some offers advertise “free” years of fees while charging a higher premium on the metal, so compare the total cost. Our US bullion dealers page shows how premiums on the same coin differ between dealers.
An alternative some investors use is an exchange-traded product backed by physical metal, held in an ordinary IRA brokerage account. You own shares that track the metal price rather than specific coins, with no separate custodian or storage arrangement.
Questions to ask before opening one
- Which depository holds the metal, and is storage commingled or segregated?
- What are the set-up, annual custodian, storage and insurance fees in dollars?
- Can I choose any dealer, or only the one the custodian works with?
- What premium over spot will I pay, and what will the dealer bid if I sell back?
- How are in-kind distributions handled, and what does shipping cost?
- Which products does the custodian accept as IRA-eligible?
Bottom line
A gold IRA is a self-directed IRA that holds IRS-eligible coins and bullion through a custodian and an approved depository. American Eagles, American Buffalos and bullion of sufficient fineness qualify; Krugerrands, Sovereigns and rare coins do not. Taking personal possession of IRA metal is treated as a distribution. Contribution limits, withdrawal taxes and required minimum distributions follow the normal IRA rules.
Sources: IRS: Investments in collectibles in IRAs · IRS Publication 590-B · IRS: 2026 IRA limits
This is general information, not tax or investment advice.
Frequently asked questions
What gold can I hold in an IRA?
US Mint coins such as American Gold Eagles and Buffalos, and gold bullion that meets the fineness standard (in practice .995 or higher) held by an approved trustee. Krugerrands, Sovereigns and rare coins are not eligible.
Can I keep my gold IRA coins at home?
No. IRS Publication 590-B says that if the IRA owner takes possession of the coins, they are treated as distributed, and the Tax Court confirmed this in McNulty v. Commissioner (2021).
How much can I put into a gold IRA in 2026?
The 2026 IRA contribution limit is $7,500, or $8,600 if you are 50 or older, across all your IRAs. Transfers and rollovers from other retirement accounts do not count toward the limit.
How are gold IRA withdrawals taxed?
Traditional IRA withdrawals are taxed as ordinary income, with a 10% additional tax before age 59½ unless an exception applies. Qualified Roth IRA distributions are tax-free.
