How the account works
A self-directed IRA may allow eligible bullion and coins, subject to IRS rules and the custodian's permitted investments. The IRA owns the assets; you should not assume you can personally store IRA bullion.
Source: IRS guidance
What gold cannot do
Gold does not pay interest or dividends. Its price can fall, and the price you receive when selling may differ from the quoted spot price.
Source: Investor.gov investor alert
Before opening an account
Request written information about the custodian, metal eligibility, storage arrangements, annual fees, transaction spreads and liquidation procedures.
Source: Investor.gov investor alert
Continue your research
What the account actually owns
A gold IRA is not a separate tax category. It is generally a traditional or Roth individual retirement account whose custodian permits certain physical precious metals. The tax treatment follows the underlying IRA type; the gold is the investment held inside it. That distinction matters when comparing a gold IRA with an ordinary brokerage IRA.
A dealer may help arrange a purchase, but the dealer is not automatically the IRA trustee. Ask for the legal name of the custodian, the depository and the entity selling the metal. The account should be established and funded under the custodian's procedures before an IRA purchase is made.
Eligible metal is not the same as any gold product
The IRS generally treats collectibles purchased by an IRA as distributions, with exceptions for certain coins and qualifying bullion. A coin marketed as valuable, rare or government-issued is not automatically eligible. Confirm the exact product and its eligibility with the custodian before paying.
For qualifying bullion, IRS rules address fineness and physical possession by a bank or approved nonbank trustee. Be skeptical of arrangements that imply you can simply keep IRA-owned bullion in your own safe. Personal possession and prohibited transactions can have serious tax consequences.
Compare the full cost and the exit
Request an itemized purchase quote showing the spot reference, dealer premium, account opening and administration charges, storage and insurance, shipping where relevant, and the dealer's current buyback bid. A low annual custody fee does not make an expensive purchase inexpensive.
Ask what happens if you need cash for a distribution or must sell during a market decline. Gold pays no interest or dividends, can be volatile, and may be harder to liquidate promptly at an attractive price than widely traded securities. Read our fees and risks guides before contacting a dealer.
Questions to take into your research
- Is the exact metal eligible under the IRS rules?
- Who holds legal custody and where is the metal stored?
- What is the total cost to buy, hold and sell?
What the account actually owns
A gold IRA is not a separate tax category. It is generally a traditional or Roth individual retirement account whose custodian permits certain physical precious metals. The tax treatment follows the underlying IRA type; the gold is the investment held inside it. That distinction matters when comparing a gold IRA with an ordinary brokerage IRA.
A dealer may help arrange a purchase, but the dealer is not automatically the IRA trustee. Ask for the legal name of the custodian, the depository and the entity selling the metal. The account should be established and funded under the custodian's procedures before an IRA purchase is made.
Eligible metal is not the same as any gold product
The IRS generally treats collectibles purchased by an IRA as distributions, with exceptions for certain coins and qualifying bullion. A coin marketed as valuable, rare or government-issued is not automatically eligible. Confirm the exact product and its eligibility with the custodian before paying.
For qualifying bullion, IRS rules address fineness and physical possession by a bank or approved nonbank trustee. Be skeptical of arrangements that imply you can simply keep IRA-owned bullion in your own safe. Personal possession and prohibited transactions can have serious tax consequences.
Compare the full cost and the exit
Request an itemized purchase quote showing the spot reference, dealer premium, account opening and administration charges, storage and insurance, shipping where relevant, and the dealer's current buyback bid. A low annual custody fee does not make an expensive purchase inexpensive.
Ask what happens if you need cash for a distribution or must sell during a market decline. Gold pays no interest or dividends, can be volatile, and may be harder to liquidate promptly at an attractive price than widely traded securities. Read our fees and risks guides before contacting a dealer.
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?
A simple example of the moving parts
A hypothetical investor first opens a self-directed IRA with a qualified custodian, then arranges an eligible transfer or rollover, and only afterward directs the custodian to purchase eligible bullion from a dealer. The metal is held through the required custody arrangement.
Each step has a separate document and potential cost. If a sales pitch collapses all these entities into one 'gold account,' ask for the legal names and agreements before proceeding.
Common question
Is every gold bar allowed in an IRA?
No. IRS rules include fineness and custody requirements for qualifying bullion. Confirm the exact product and trustee arrangement before directing an IRA purchase.