A Gold IRA follows the same framework as any Individual Retirement Account, with a few extra rules because the account holds physical metal. Most of these rules exist to keep the tax advantages intact — break them, and the IRS can treat your metals as a taxable distribution.
Rule 1: Only IRS-approved metals qualify
The IRS sets minimum fineness standards for metals held in an IRA: gold must be at least .995 fine, silver .999 fine, and platinum and palladium .9995 fine. American Gold Eagle coins are a specific statutory exception — they qualify even at .9167 fineness. Collectibles, rare coins, and most graded or numismatic coins are not eligible, regardless of their gold content.
Rule 2: A custodian must hold the account
You cannot buy gold personally and declare it part of your IRA. A Gold IRA must be administered by an IRS-approved custodian — typically a trust company or bank — that handles the purchase, reporting, and recordkeeping. The custodian works with the metals dealer and the depository on your behalf.
Rule 3: Metals must be stored in an approved depository
IRA metals must be held in an IRS-approved, insured depository in the account's name. Storing IRA gold at home, in a personal safe, or in a safe-deposit box is not permitted — the IRS treats personal possession as a distribution, which can trigger income tax on the full value plus a 10% early-withdrawal penalty if you are under 59½.
Rule 4: Rollovers have strict mechanics
- Direct (trustee-to-trustee) transfers move funds between custodians without you touching the money. No tax, no penalty, no limit on how many you can do.
- Indirect rollovers pay the funds to you first. You have 60 days to deposit the full amount into the new IRA, and the IRS allows only one indirect IRA-to-IRA rollover per 12-month period.
- Contribution limits apply only to new annual contributions ($7,000 for 2025, $8,000 if 50 or older) — not to rollovers or transfers of existing balances.
Rule 5: Distribution rules match any IRA
Withdrawals before 59½ generally cost ordinary income tax plus a 10% penalty. Traditional Gold IRAs require minimum distributions starting at age 73, which can be taken in cash or as physical metal (taxed on its value at the time). Roth accounts have no lifetime RMDs and qualified withdrawals are tax-free. For the full tax picture, see our Gold IRA tax rules guide.
The Gold Hotline does not provide tax, legal, or investment advice. Rules and limits change — confirm current figures with your CPA or financial advisor.
Ready for the practical side? See how to set up a Gold IRA step by step →