How a Gold IRA Works

A Gold IRA is a self-directed individual retirement account that owns physical gold instead of stocks or funds. You open the account with a custodian, move money in through a contribution, rollover or transfer, and the custodian buys IRA-eligible coins or bars that a trustee or a depository your custodian uses holds for you. The tax rules are the same as any Traditional or Roth IRA. The gold can't be kept at home.

The parts of a Gold IRA

A self-directed IRA

A self-directed IRA can hold a wider range of assets than a typical brokerage IRA, including certain precious metals. It is still an IRA under Internal Revenue Code section 408, so the same contribution limits, distribution rules and penalties apply.

The custodian

The custodian is the trustee of the account. It opens the IRA, keeps the records, reports to the IRS and carries out purchases and sales on your instruction. Each year it files Form 5498 with the IRS, which reports rollover contributions received during the year and the fair market value of the account on December 31. For a metals account, the CFTC and FINRA note that the custodian's statement shows melt value, which is total weight multiplied by the spot price. You can read more about how that price is set in our guide to the spot price of gold.

The depository

The metal has to sit with a trustee that physically possesses it. In practice the custodian arranges storage at a depository that holds IRA metal. You own the metal through the IRA, and you never hold it yourself while it is in the account.

Which gold an IRA can hold

The tax code starts from a ban. Under IRC 408(m), an IRA that buys a "collectible" is treated as if it took a distribution equal to the cost of the item. Collectibles include any metal, gem, stamp or coin. The IRS puts it plainly in its IRA FAQs: gold and other bullion are collectibles under the IRA statutes.

Section 408(m)(3) then carves out two exceptions.

1. Certain coins. The exception covers the American Eagle gold coins described in 31 U.S.C. 5112(a)(7) through (10). The U.S. Mint lists their composition as 91.67% gold, 3% silver and the balance copper, the 22-karat standard, and they qualify because the statute names them, whatever their fineness.
2. Certain bullion. Gold, silver, platinum or palladium bullion qualifies if it meets the minimum fineness a regulated futures contract requires for delivery. For gold, the COMEX gold futures contract at CME Group requires a minimum of 995 fineness (99.5% pure). The bullion must also be in the physical possession of an IRA trustee.

The U.S. Mint's American Buffalo gold coin is .9999 fine, 24-karat gold, so it clears the bullion test. Our page on IRA-eligible gold walks through common coins and bars, and the American Gold Eagle value page explains how the Eagle is priced.

If the account buys something outside these rules, such as a rare collector coin that isn't on the list, the IRS treats the purchase price as a distribution in that year. If you are under 59½, the IRS says the 10% additional tax on early distributions may apply as well.

Why home storage is not allowed

The bullion exception in 408(m)(3) only works while the metal is "in the physical possession" of a trustee. Some promoters have pitched a workaround: the IRA owns an LLC, the LLC buys the coins, and you keep them in a safe at home.

The U.S. Tax Court rejected that setup in a 2021 case, McNulty v. Commissioner. The taxpayer's self-directed IRA owned an LLC that bought American Eagle gold coins, which were shipped to her home and kept in a safe. The court held that her physical custody of the coins gave her control over them, so the purchases were taxable distributions from the IRA, and it upheld accuracy-related penalties on top. The IRS had proposed deficiencies of $250,558 for 2015 and $18,094 for 2016, as reported by the Journal of Accountancy.

The metal stays with the trustee or depository for as long as it is in the IRA. To hold the coins yourself, you take a distribution, taxed like any other IRA distribution.

Contribution limits for 2026

A Gold IRA shares the same annual limit as all your other IRAs combined. The IRS set these figures for 2026:

Most people fund a Gold IRA with money already in another retirement account, which doesn't count against the annual limit when done as a rollover or transfer. Our guide to the 401(k) to Gold IRA rollover covers how that works and the mistakes that trigger tax.

Traditional or Roth

You can hold gold in either type.

In a Traditional Gold IRA, the IRS says you can deduct contributions if you qualify, and deductible contributions and earnings are taxable when they come out. In a Roth Gold IRA, contributions aren't deductible, and the IRS says qualified distributions owe no tax. Roth contributions phase out by income: for 2026 the range is $153,000 to $168,000 for single filers and $242,000 to $252,000 for married couples filing jointly.

Required minimum distributions

A Traditional Gold IRA follows the normal required minimum distribution rules. The IRS says you generally must start withdrawals at age 73, with the first one due by April 1 of the year after you turn 73. Roth IRA owners don't take RMDs during their lifetime.

Gold makes RMDs a little more involved, because the account holds metal instead of cash. Most owners sell enough metal to cover the withdrawal. Some custodians will also ship coins or bars to you as the distribution, so ask yours how it values and reports metal that leaves the account. Plan this before you turn 73 so you are not selling in a hurry.

Gold IRA pros and cons

What people like: - The account holds physical metal with a weight and purity you can look up, such as the U.S. Mint's specifications. - It sits alongside stock and bond accounts as a different kind of asset. - The tax rules are the same as any other Traditional or Roth IRA.

What to weigh: - Gold prices rise and fall, you can lose money, and the metal pays no interest or dividends. - Costs are higher than a standard brokerage IRA. The CFTC and FINRA note that self-directed IRA fees are typically higher than fees on other IRAs, and you pay a spread when you buy and sell metal. See our breakdown of Gold IRA fees. - You can't hold the metal yourself while it is in the account. - RMDs from a Traditional account usually mean selling metal on a schedule you don't fully control. - The CFTC has warned about dealers who call themselves "IRA experts" but are not licensed to give investment advice. Ask who you are talking to and how they are paid.

If you want the whole picture in one place, get the free Gold IRA Planning Guide.

Frequently asked questions

What is a Gold IRA?

A Gold IRA is a self-directed IRA that holds physical gold that meets IRS rules, such as American Eagle gold coins or bullion of at least 995 fineness. A custodian runs the account and a trustee or depository holds the metal. Contribution limits, taxes and distribution rules are the same as for other IRAs.

Can I keep Gold IRA coins at home?

No. IRC 408(m)(3) requires IRA bullion to be in the physical possession of a trustee, and the Tax Court ruled in McNulty v. Commissioner (2021) that keeping IRA-bought gold coins in a home safe resulted in taxable distributions. If you want the metal in hand, you take a distribution and pay any tax due.

How much can I put into a Gold IRA in 2026?

For 2026 the IRS limit is $7,500 across all your IRAs, plus a $1,100 catch-up if you are 50 or older. Rollovers and trustee-to-trustee transfers from other retirement accounts don't count toward that limit.

Does a Gold IRA have required minimum distributions?

A Traditional Gold IRA does. The IRS says withdrawals generally must begin at age 73, with the first due by April 1 of the following year. Because the account holds metal, you usually sell some to cover the withdrawal. A Roth Gold IRA has no RMDs for the original owner.

Will gold in an IRA hold its value?

No. Gold prices rise and fall, and you can lose money. The U.S. Mint stands behind the weight and purity of its coins, and that says nothing about what the coins will sell for later.

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