Precious Metals IRA FAQ
A precious metals IRA is a self-directed IRA that holds physical gold, silver, platinum or palladium meeting IRS standards, stored with an approved depository. Below are short answers to the 20 questions people ask most often, each with a link to a deeper guide.
Basics of Holding Metal in a Retirement Account
1. What is a precious metals IRA?
It is a traditional, Roth, SEP or SIMPLE IRA held by a self-directed custodian that allows physical metal. The account follows normal IRA tax rules; only the asset is different. See what is a gold IRA.
2. Is holding gold in an IRA legal?
Yes. Internal Revenue Code section 408(m) treats most collectibles as distributions but makes exceptions for certain coins and for bullion meeting minimum fineness, held by a trustee.
3. Which metals qualify?
Gold generally at .995 fineness, silver at .999, platinum and palladium at .9995, plus American Eagle coins under a specific exception. Many collectible and numismatic coins do not qualify. See IRS purity standards.
4. Do I own specific coins or just a claim on gold?
The IRA owns specific physical products. In segregated storage your exact items are set aside; in commingled storage you own an equal quantity of identical items in a shared pool.
5. Can I store IRA gold at home?
No. The metal must be held by an approved trustee or depository. The Tax Court treated coins kept at home through IRA-owned LLCs as distributions in McNulty v. Commissioner (2021).
Opening and Funding
6. How do I open one?
Choose a metals company, open a self-directed IRA with a custodian, fund it, choose eligible metals, sign a buy direction and confirm storage. Our step-by-step guide explains each stage.
7. How long does setup take?
Often one to four weeks, mostly depending on how quickly your current provider releases funds.
8. Can I move money from a 401(k) into gold?
Often yes, if your plan allows distributions, typically after you leave the employer. A direct rollover to the new custodian avoids the 20% mandatory withholding that applies when an eligible distribution is paid to you. See 401(k) to gold IRA rollovers.
9. What is the difference between a transfer and a rollover?
A trustee-to-trustee transfer moves IRA money directly between custodians with no 60-day clock. An indirect rollover pays you first, and you have 60 days to redeposit; only one indirect IRA-to-IRA rollover is allowed per 12 months.
10. Can I contribute coins I already own?
No. Contributions must be in cash, and selling your own coins to the IRA is a prohibited transaction.
11. How much can I add each year?
Annual limits change, so check the IRS page on IRA contribution limits. Rollovers and transfers do not count against the limit.
Costs, Risks and Choosing a Company
12. What does a metals account cost?
Expect dealer premiums on purchases plus custodian setup, annual, storage and transaction fees. Costs vary by company, so compare published schedules. See fees explained.
13. What are the main risks of gold in a retirement account?
Price swings, no income, fees and spreads, slower access and sales-practice risks. The CFTC's Learn and Protect section describes precious metals fraud warnings.
14. How do I check a metals company?
Get written pricing and fees, verify the custodian and depository directly, check complaint records, and avoid anyone using urgency. Our scams and red flags page has a checklist.
15. Where does Goldco fit?
Goldco is a precious metals company headquartered in Calabasas, California. It offers gold and silver for precious-metals IRAs funded by transfer or rollover, plus direct purchases, and says IRA metals go to an independent insured depository. Its precious metals specialists are not licensed to give financial, legal or tax advice. See our Goldco review.
Taxes, Withdrawals and Inheritance
16. How are metals taxed inside the account?
They follow IRA rules: no tax when you buy or sell inside the account. Traditional distributions are ordinary income; qualified Roth distributions are tax-free. The 28% collectibles rate applies only to metal sold outside an IRA.
17. How do I take money or metal out?
Sell metal and take cash, or take the metal itself in kind at fair market value. Your custodian reports distributions on Form 1099-R. See taking distributions.
18. Do RMDs apply to gold and silver?
Yes, for traditional, SEP and SIMPLE IRAs once required by IRS rules, based on year-end fair market value. Roth IRAs have no RMDs for the original owner. See the IRS RMD page.
19. What happens to the metals when I die?
They pass to the beneficiaries named on the custodian's form. Spouses have extra options; most other beneficiaries generally must empty the account within 10 years. See beneficiaries and inheritance.
20. Can metals be sold back to the company that sold them?
Often, if it offers a buyback. Goldco advertises a buyback program for IRA-approved coins; review its written terms and compare quotes. See selling metals or closing an account.