Gold IRA explained
A precious metals IRA lets you hold physical gold and silver inside a retirement account. The rules are strict and the fees are real. Here's how it works.
By Prepper Metals Editorial · Updated October 2026 · Editorial standards
What is a gold IRA?
A gold IRA, more accurately a precious metals IRA, is a self-directed IRA that holds physical metal instead of stocks or funds. It follows the same basic tax rules as other IRAs, but the metal must meet IRS standards and be held by an approved custodian and depository. There are traditional (pre-tax) and Roth (after-tax) versions.
Three parties are usually involved: a custodian that administers the account, a dealer that sells the metal, and a depository that stores it.
The IRS rules that matter
- Purity standards: gold generally must be at least .995 fine and silver .999 fine. The American Gold Eagle is a specific exception that's allowed.
- No collectibles: most collectible and numismatic coins aren't allowed.
- Approved storage: the metal must be held by a qualified trustee or depository, not in your home safe. Be very cautious of "home storage IRA" pitches; holding IRA metal yourself can be treated as a taxable distribution.
- Normal IRA limits apply: annual contribution limits and, for traditional IRAs, required minimum distributions starting at the age set by law.
How people fund a precious metals IRA
- Direct transfer from an existing IRA, custodian to custodian. This is usually the cleanest way and avoids withholding.
- Rollover from a former employer's 401(k) or similar plan. A direct rollover avoids mandatory withholding; with an indirect rollover you generally have 60 days to complete it.
- New contributions, up to the annual IRA limit.
Rules vary by plan, so confirm the steps with your current plan administrator and a tax professional before moving money.
Fees to expect
| Fee | What it is |
|---|---|
| Account setup | One-time fee to open the self-directed IRA |
| Annual custodian / admin | Yearly fee to maintain the account |
| Storage | Yearly depository fee; segregated storage usually costs more than commingled |
| Dealer premium | The markup over spot on the metal you buy |
| Buyback spread | The difference between what you pay and what you'd get selling it back |
Fees can be flat or based on account value. Ask for every fee in writing, for the first year and every year after.
Risks and trade-offs
- Metal prices can fall, sometimes for years.
- Physical metal pays no interest or dividends.
- Ongoing fees reduce your returns over time.
- Selling takes more steps than selling a fund.
- High-premium "collector" or "premium" products can cost far more than their metal value.
Questions to ask before you open one
- Who is the custodian, and who is the depository?
- What are all the fees: setup, annual, storage and shipping?
- What is the price per ounce over spot for each product you recommend?
- Is the product bullion or a premium/collectible product? Why?
- What is your buyback policy, and what would you pay me today?
- Is storage segregated or commingled?
- What happens when I need to take distributions?
Educational information only, not investment, tax or legal advice. Precious metals prices change constantly and can go down as well as up. Talk to a licensed professional about your situation. Full disclaimer.
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Tool: Augusta Precious Metals inflation and retirement calculator (affiliate link).
Comparing companies? See how to compare gold IRA companies.
Keep reading
Sources
- IRS: Retirement plan investments FAQs
- 26 U.S. Code § 408, including (m) on collectibles and bullion (Cornell LII)
- IRS Publication 590-A: Contributions to IRAs
- IRS Publication 590-B: Distributions from IRAs
- CFTC customer advisory: Beware of gold and silver schemes designed to drain your retirement savings
We check facts against primary sources where possible. Spot an error? Email hello@preppermetals.com. See our editorial standards.
Common questions
Can I keep gold from my IRA at home?
Generally no. IRS rules require IRA metals to be held by a qualified trustee or depository. Taking possession can be treated as a distribution, which may trigger taxes and penalties. Talk to a tax professional.
What metals are allowed in a gold IRA?
Bullion that meets IRS fineness standards: generally .995 for gold (with an exception for American Gold Eagles) and .999 for silver, from approved mints and refiners. Most collectible coins aren't allowed.
Can I roll a 401(k) into a gold IRA?
Often yes, especially from a former employer's plan, through a direct rollover to a self-directed IRA custodian. Rules depend on your plan, so check with your plan administrator and a tax professional.