Separate three roles
The dealer sells metal, the IRA custodian administers the account, and a depository may physically store the metal. Ask for each entity’s legal name and contract.
Storage rules matter
The IRS says qualifying bullion generally must be in the physical possession of a bank or IRS-approved nonbank trustee. Do not assume a home-storage arrangement is compliant.
Read the storage agreement
Ask whether storage is segregated or commingled, how holdings are documented, what insurance covers, and what withdrawal or sale procedures cost.
Continue your research
Review total costs, investment risks and our Noble Gold Wealth Kit guide before making a decision.
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Know the three separate roles
The dealer quotes and sells metal. The IRA custodian or trustee administers the account and records its assets. A depository physically stores metal under an arrangement established through the account. Ask for each entity's legal name and contractual responsibilities.
A custodian's involvement does not mean it has vetted the dealer or the investment. The SEC specifically cautions that self-directed IRA custodians often do not assess investment quality or promoter legitimacy.
Storage arrangements and documentation
Ask whether holdings are segregated or commingled, how title and records are maintained, which party carries insurance and what the coverage excludes. Request the storage agreement and the process for auditing or confirming inventory.
For bullion relying on the statutory exception to collectible treatment, the IRS describes physical possession by a bank or approved nonbank trustee. Do not assume marketing language about home storage satisfies the rules.
What happens at distribution or liquidation
Ask whether you may sell within the IRA, take an in-kind distribution when permitted, or transfer to another custodian. Each path may have valuation, shipping, tax and processing implications.
Confirm the steps and expected timing in writing, including who authorizes a sale and how the custodian reports distributions. A promised 'buyback' should be checked against its actual conditions.
Questions to take into your research
- Can I get the exact terms and all fees in writing?
- What could cause a loss or an unexpected tax bill?
- How would I exit this position if I needed cash?
Documents worth requesting
Obtain the custodial agreement, current fee schedule, depository agreement or disclosure, insurance summary and written transfer-out instructions. Confirm whether statements identify specific holdings or report pooled quantities.
Ask how discrepancies are resolved and whether you can obtain an independent confirmation of inventory. A marketing phrase such as 'fully insured' does not explain deductibles, exclusions or who is the named insured.
Common question
Does a custodian guarantee the dealer's products?
No. A custodian administers assets and may not evaluate the quality or legitimacy of the investment. Verify the dealer, metal eligibility and price independently.