The short answer: A gold IRA is a self-directed individual retirement account that holds physical, IRS-approved gold and other precious metals instead of stocks or funds. A specialized custodian runs the account, the metal is stored in an approved depository, and normal IRA tax rules apply. For 2026 you can contribute up to $7,500 ($8,600 if you are 50 or older), and rollovers from other retirement accounts have no dollar limit.
What is a gold IRA?
A gold IRA, also called a precious metals IRA, is a type of self-directed IRA. It follows the same tax rules as any IRA but is allowed to own physical bullion and certain coins. Most brokerages, such as the ones that hold your mutual funds, do not offer this, so gold IRAs use custodians that specialize in alternative assets.
You can open one as:
- Traditional gold IRA: contributions may be tax-deductible, growth is tax-deferred, and withdrawals are taxed as ordinary income.
- Roth gold IRA: contributions are made with after-tax money, and qualified withdrawals in retirement are tax-free.
- SEP gold IRA: for self-employed people and small business owners, with higher contribution limits.
Who is involved in a gold IRA?
Three separate parties handle different jobs. Knowing who does what helps you compare fees and spot problems.
| Party | What they do | How they are paid |
|---|---|---|
| Custodian | Holds the IRA, keeps records, reports to the IRS, sends statements | Setup and yearly account fees |
| Dealer | Sells you the metal and usually helps with paperwork; may buy it back later | The spread or markup on metal |
| Depository | Stores and insures the physical metal in a secure vault | Yearly storage fee |
Many “gold IRA companies” you see advertised are dealers that partner with a custodian and a depository. You are allowed to pick your own custodian and depository, so ask which ones a dealer uses and why.
Which metals can you hold in a gold IRA?
The IRS treats most metals and coins as collectibles, which IRAs cannot own. The law makes exceptions for certain bullion and government coins. If your IRA buys something that does not qualify, the IRS treats the cost as a taxable distribution.
| Metal | Minimum fineness | Common examples |
|---|---|---|
| Gold | .995 | American Gold Eagle (allowed by statute at .9167), American Gold Buffalo, Canadian Gold Maple Leaf, approved bars |
| Silver | .999 | American Silver Eagle, Canadian Silver Maple Leaf, approved bars |
| Platinum | .9995 | American Platinum Eagle, approved bars |
| Palladium | .9995 | American Palladium Eagle, approved bars |
Not allowed: rare or numismatic coins, most pre-1933 gold coins, graded “collector” coins, and jewelry. Be cautious if a salesperson steers you toward “exclusive” or rare coins for an IRA. Those often carry the highest markups.
Where is the gold stored?
IRA bullion must stay in the physical possession of a bank or an IRS-approved non-bank trustee. In practice, that means an approved depository. You cannot keep IRA gold at home or in your own safe deposit box. A 2021 US Tax Court case, McNulty v. Commissioner, found that a couple who kept IRA coins at home had taken taxable distributions.
You will usually choose between two storage types:
- Commingled: your metal is stored with other customers’ metal of the same type. It is usually cheaper.
- Segregated: your specific bars and coins are stored separately. It usually costs more.
How do you open and fund a gold IRA?
- Pick a dealer and custodian. Compare fees, storage options and buyback terms in writing.
- Open the self-directed IRA. The paperwork is similar to any IRA application.
- Fund it. You can make a new contribution, do a direct transfer from another IRA, or roll over money from a 401(k), 403(b), 457 or TSP.
- Choose your metal. Ask for the price per coin or bar and the current spot price, so you can see the markup.
- Confirm storage. The dealer ships the metal directly to the depository, and your custodian statement should list your holdings.
For moving existing savings, a direct trustee-to-trustee transfer is the cleanest option. With an indirect rollover, the money is paid to you and you have 60 days to deposit it into the new IRA. You are limited to one indirect IRA-to-IRA rollover in any 12-month period, and missing the deadline can make the money taxable.
What are the 2026 gold IRA limits and rules?
- Contribution limit: $7,500 for 2026 across all your IRAs, plus a $1,100 catch-up at age 50 or older.
- Rollovers and transfers: no dollar limit and they do not count toward the contribution limit.
- Roth income limits: Roth contributions phase out between $153,000 and $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly.
- Early withdrawals: generally taxed plus a 10% penalty before age 59 and a half, with some exceptions.
- Required minimum distributions: begin at 73 for traditional IRAs, rising to 75 for people born in 1960 or later. You can take RMDs in cash by selling metal, or “in kind” by having coins shipped to you, which is taxed at their market value.
How much does a gold IRA cost?
Expect several layers of cost. Ask for each one in writing before you sign.
| Cost | Typical structure |
|---|---|
| Setup fee | One time, often under $100; sometimes waived |
| Custodian fee | Yearly, flat or scaled to account value |
| Storage fee | Yearly, often $100 to $300 depending on storage type |
| Dealer markup | Built into the price; varies widely by product |
| Buyback spread | The gap between what the dealer pays you and the current price when you sell |
Because of these costs, gold IRAs tend to make more sense for larger balances. On a small account, flat yearly fees can eat a meaningful share of any gains.
What are the pros and cons of a gold IRA?
| Pros | Cons |
|---|---|
| Diversifies away from stocks and bonds | No interest, dividends or income |
| Historically used as an inflation and crisis hedge | Higher fees than a typical IRA |
| Same tax advantages as other IRAs | Prices can fall or stay flat for years |
| You own physical metal, not a paper claim | Selling takes longer than selling a fund |
How do you avoid gold IRA scams?
The biggest risk is not gold itself but how it is sold. In 2024 a federal court ordered Red Rock Secured and its executives to pay about $76 million after the SEC alleged the firm charged retirees hidden markups of up to 130%. Watch for:
- Pressure to move all of your savings or to act before a predicted crash
- Pitches for rare, “exclusive” or numismatic coins
- Refusal to state markups in writing
- Suggestions to store IRA metal at home
Read our full guide to gold IRA scams before you call any company.
Frequently asked questions
What is a gold IRA?
A gold IRA is a self-directed IRA that holds IRS-approved physical gold and other precious metals. A custodian administers it and the metal is kept in an approved depository.
Can I roll my 401(k) into a gold IRA?
Usually yes, if the 401(k) is from a former employer or your plan allows in-service rollovers. A direct rollover avoids withholding and the 60-day deadline.
Can I store gold IRA metal at home?
No. IRS rules require IRA bullion to be held by a bank or approved trustee. Keeping it at home can be treated as a taxable distribution.
Are gold IRA contributions tax-deductible?
Traditional gold IRA contributions may be deductible depending on your income and workplace plan. Roth gold IRA contributions are not deductible, but qualified withdrawals are tax-free.
What coins are allowed in a gold IRA?
Gold bullion must be at least .995 fine, and certain government coins such as the American Gold Eagle are allowed by law. Rare and collectible coins are not allowed.
How do I take money out of a gold IRA?
You can sell metal through the custodian and take cash, or take coins and bars in kind. Either way, traditional IRA distributions are taxed as income and may face a 10% penalty before age 59 and a half.
Sources: IRS: collectibles in retirement accounts, IRS 2026 limits, SEC. This guide is general education, not tax or investment advice.