How to Open a Precious Metals IRA
Opening a precious metals IRA usually takes seven steps: choose a metals company, open a self-directed IRA with a custodian, fund it by transfer, rollover or contribution, choose IRS-eligible metals, sign a buy direction, confirm the metal reached the depository, and keep your records. Most of the paperwork is handled by the custodian, but you make each decision.
Before You Start: Three Things to Decide
- Which account type. Traditional or Roth? The choice usually follows the money you are moving: a traditional 401(k) generally goes to a traditional IRA. See traditional vs. Roth gold IRA.
- How much to move. Many people move only part of their savings into metals. A partial rollover is common.
- Which metals. Gold, silver, or a mix, and coins or bars. Each has different premiums and storage costs.
Step 1: Choose a Precious Metals Company
The metals company sells you the coins and bars and usually helps coordinate the paperwork. Compare published fees, minimums, product pricing, buyback terms and complaint history. Our guide on how to compare gold companies lays out a method, and our Goldco review applies it to one company.
Step 2: Open a Self-Directed Account With a Custodian
A standard brokerage IRA cannot hold physical metal. You need a self-directed IRA with a custodian that administers precious metals. The custodian must be a bank or an IRS-approved nonbank trustee. You will complete an account application, provide identification, agree to the fee schedule and name beneficiaries. Many metals companies work with several custodians and can send you the right forms.
Step 3: Fund the Account
There are three ways to put money in:
- Trustee-to-trustee transfer from an existing IRA. The new custodian requests the funds from your current custodian. No tax and no 60-day clock.
- Direct rollover from an employer plan like a 401(k), 403(b) or TSP, paid straight to the new custodian. No withholding.
- Annual contribution of new cash, within IRS limits. See contributing to a metals IRA.
Avoid taking a check payable to yourself if you can. An indirect rollover from an employer plan is subject to 20% mandatory federal withholding, and you must deposit the full amount within 60 days to avoid tax. The IRS explains the rules on its rollovers page. For more detail, see direct vs. indirect rollovers.
Step 4: Choose Eligible Metals
Metals must meet the fineness standards in Internal Revenue Code section 408(m): generally .995 for gold, .999 for silver and .9995 for platinum and palladium, with an exception for American Eagle coins. Common choices include American Gold Eagles, Gold Maple Leafs, American Silver Eagles and refiner bars. Ask for the premium over spot on each product before choosing. See IRA-eligible gold coins.
Step 5: Sign the Buy Direction
Once funds arrive, you sign a buy direction letter (custodians use various names for this form) that tells the custodian what to buy, from which dealer and at what price. The custodian pays the dealer from your account. Prices are generally locked at the time of the order.
Step 6: Confirm Storage
The dealer ships the metal to an approved depository. You choose segregated or commingled storage, which can affect fees. Within a few weeks, your custodian statement should list the specific products and quantities. If it does not, follow up. Our page on metals IRA depositories explains the options.
Step 7: Keep Records and Review Annually
Keep copies of your application, transfer forms, invoices and statements. Each year your custodian sends Form 5498 showing contributions and fair market value. Review fees, storage and whether the metals share of your savings still matches your plans.
How It Works With Goldco
Goldco is a precious metals company that offers gold and silver for precious-metals IRAs funded by transfer or rollover from an existing IRA, 401(k) or other qualified account. It says it works with all major self-directed IRA custodians and that IRA metals go to an independent insured depository. Its precious metals specialists help with paperwork but are not licensed to give financial, legal or tax advice. Our how Goldco works page describes each stage.
Frequently Asked Questions
Can I open a gold account online?
Many custodians accept online applications, though transfer forms from your old provider may still need signatures.
Do I need to sell my current holdings first?
Your current custodian usually sells holdings to cash before sending the transfer. Some plans require you to request this.
How long does setup take?
Often a few weeks from application to metal in storage, depending mostly on how quickly the old provider releases funds. See metals IRA timeline.
Can I add silver later?
Yes. As long as there is cash in the account, you can sign a new buy direction at any time.