Selling Metals or Closing a Metals IRA
You have four main ways out of a precious metals IRA position: sell metal and keep the cash inside the IRA, sell and distribute the cash, distribute the metal itself in kind, or transfer the account to another custodian. Only the distribution options are taxable. Selling inside the account or moving it custodian to custodian generally is not.
Option 1: Sell Metal, Keep the Cash in the Account
You can sell some or all of the metal and leave the proceeds in the IRA as cash. Inside a traditional or Roth IRA, the sale itself is not taxed. People do this to rebalance, raise cash for fees or future distributions, or move into other assets the custodian allows.
The process: you tell the custodian (or the dealer, who then coordinates with the custodian) what to sell, a dealer bids on the metal, the custodian authorizes release from the depository, and cash settles into the account once the dealer receives and verifies the metal.
Option 2: Sell and Take Cash Out
This is a cash distribution. The metal is sold as above, and the custodian then pays the cash to you. For a traditional IRA, the distribution is generally taxable as ordinary income, and an additional 10% tax may apply before the IRS-defined age unless an exception applies. Our page on taking distributions from a metals IRA covers withholding and reporting.
Option 3: Take the Metal Itself
An in-kind distribution ships the coins and bars to you. It avoids a sale and the spread that comes with it, but the fair market value is generally taxable for a traditional IRA, reported on Form 1099-R.
Option 4: Transfer to Another Custodian
If you are unhappy with your custodian's fees or service, you can move the IRA to a different self-directed custodian by trustee-to-trustee transfer. Metal can usually be transferred in kind, meaning it changes custodians (and sometimes depositories) without being sold. You can also sell first and transfer cash, for example to a brokerage IRA. A direct transfer is not a distribution and does not count toward the one-rollover-per-12-months limit. See IRA-to-IRA transfers.
Who Buys the Metal
When you sell inside an IRA, a dealer has to buy the metal. You can often choose the dealer, including the one that sold it to you. Some companies advertise buyback programs. Goldco, for example, advertises a buyback program for IRA-approved coins "at the highest price"; that is Goldco's advertised claim, so read the written terms and compare a quote from another dealer before selling. See the Goldco buyback program and our general guide to how precious metals buybacks work.
Before accepting a bid, ask:
- Is the price per unit quoted against the current spot price, and how long is the quote valid?
- Is the price locked when you agree, or when the metal reaches the dealer?
- Who pays shipping and insurance from the depository?
- When will cash settle in the IRA?
Closing Costs to Ask About
Ending a self-directed IRA relationship can involve several charges, set by the custodian and the depository rather than by the dealer. Request the current fee schedule and ask specifically about:
- Account termination or closing fees charged by the custodian.
- Transfer-out fees for sending assets to another custodian.
- Per-transaction sale fees for each sell order.
- Shipping, handling and insurance for moving metal out of the depository.
- Prorated or full-year storage fees, since some depositories bill annually in advance without refunds.
- Wire or check fees for paying out cash.
Our guide to metals IRA fees explained covers how these are typically structured.
Partial Versus Full Exit
You do not have to sell everything at once. Some owners sell in stages to spread out timing, or keep a smaller metals position while moving the rest elsewhere. Smaller coins and bars make partial sales easier than a single large bar. If you are closing the account entirely, make sure every holding is sold, distributed or transferred and that the cash balance is zero before the final statement, so you are not billed for another year.
Taxes and Timing
Selling inside the IRA has no immediate tax effect. Distributions do. If you plan to take cash or metal out, think about which tax year it falls into and whether withholding is needed. Year-end distributions can also interact with required minimum distributions. The IRS covers distribution rules in Publication 590-B.
Frequently Asked Questions
Can I sell my IRA gold to any dealer?
Generally yes, if your custodian can work with that dealer. The dealer pays the custodian, not you.
Is selling metal inside the account a taxable event?
No. Tax applies when money or metal leaves the IRA as a distribution.
Can I move my metals to a different custodian without selling?
Usually yes, through an in-kind trustee-to-trustee transfer, if the new custodian accepts the products.
How long does selling take?
Often several business days to a couple of weeks, depending on the dealer, depository shipping and custodian processing.