Contributing to a Precious Metals IRA
You fund a precious metals IRA in one of two ways: annual contributions of new money, which are capped by IRS limits, or rollovers and transfers from existing retirement accounts, which are not. Annual contributions must be made in cash, not in coins, and the custodian then uses that cash to buy approved metal for the account.
Two Ways Money Gets Into a Metals Account
People often use "contribution" loosely, but the IRS draws a clear line.
- Regular contributions are new dollars you put in for a given tax year. They count against your annual IRA limit and require taxable compensation.
- Rollovers and transfers move money that is already in a retirement account, such as an old 401(k) or another IRA, into the metals IRA. They do not count against the annual limit. See our guide to 401(k) to gold IRA rollovers for that path.
Most metals IRAs are opened with a rollover or transfer, because that is where larger balances usually sit. Annual contributions are then a way to add to the account over time.
How Much You Can Put In Each Year
The IRS sets an annual dollar limit that applies across all of your traditional and Roth IRAs combined, with an additional catch-up amount allowed once you reach an age set by the IRS. Both figures are adjusted for inflation periodically, and Roth eligibility phases out at income levels that also change. Because these numbers change, we do not list them here. The current figures are on the IRS page for IRA contribution limits.
Some rules that stay stable:
- You cannot contribute more than your taxable compensation for the year, though a spouse may contribute based on joint compensation. See spousal IRAs and precious metals.
- Under the SECURE Act, there is no longer an age cap on making traditional IRA contributions, according to IRS Publication 590-A.
- Contributing more than the limit creates an excess contribution, which is subject to a 6% excise tax each year it stays in the account unless corrected.
Cash In, Metal Bought
Under the IRS rules in Publication 590-A, regular IRA contributions must be made in cash, which in practice means a check, wire or bank transfer. You cannot hand coins or bars you already own to your custodian as a contribution. And you cannot sell your own metal to your IRA, because that would be a prohibited transaction.
The usual sequence looks like this:
- You send cash to your self-directed IRA custodian and say which tax year the contribution is for.
- The funds settle in the account's cash position.
- You sign a buy direction letter telling the custodian which metals to buy and from which dealer.
- The custodian pays the dealer, and the dealer ships the metal to the approved depository.
Our metals IRA paperwork page walks through each form.
Deadlines and Prior-Year Contributions
IRA contributions for a tax year can be made until the federal tax filing deadline for that year, not including extensions. That usually means mid-April of the following year. When you contribute between January 1 and the deadline, tell the custodian which year you mean, because the custodian reports it on Form 5498 by tax year.
Timing purchases is a separate question. The cash can sit in the account until you choose to buy, and the metal price you pay depends on the market at the time of purchase.
Small Contributions and Account Costs
Self-directed custodians and depositories commonly charge flat annual fees. On a small balance, those fees can take up a meaningful share of the account. Many owners therefore make annual contributions to an account that already holds a larger rollover balance, or let cash build up before buying. You can compare fee structures using our page on metals IRA fees explained and Goldco's specific terms on Goldco fees.
Traditional Versus Roth Contributions
A traditional IRA contribution may be tax-deductible, depending on income and workplace plan coverage, and later distributions are taxed. A Roth contribution is not deductible, but qualified distributions are tax-free. The metals rules are the same in both. Our comparison of traditional vs. Roth gold IRAs goes further.
Where Goldco Fits
Goldco is a precious metals company. According to its website, it offers gold and silver for precious-metals IRAs funded by transfer or rollover from an existing IRA, 401(k) or other qualified account. If you plan to add annual contributions afterward, ask the custodian how they handle new cash and how to request additional metal purchases. Goldco's precious metals specialists are not licensed to give tax advice, so confirm deductibility questions with a tax professional.
Frequently Asked Questions
Can I contribute gold coins I already own?
No. Regular contributions must be in cash. Coins you own personally cannot be deposited as a contribution.
Do rollovers count toward my annual limit?
No. Rollovers and trustee-to-trustee transfers move existing retirement money and do not count against the annual contribution limit.
How are contributions reported?
Your custodian reports contributions, rollovers and year-end fair market value on Form 5498, which is also sent to you.
What if I contribute too much?
An excess contribution can be withdrawn with its earnings by your tax filing deadline to avoid the 6% excise tax. Talk with a tax professional about the steps.