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Last updated: July 18, 2026 · By White Metal Resources Editorial
Quick answer: A precious metals IRA follows every federal rule that governs any IRA, plus one extra layer written into Internal Revenue Code section 408(m). That layer decides which metals qualify, at what purity, and where they may be kept. Four metals are on the statutory list: gold, silver, platinum, and palladium. Bullion must meet the fineness a regulated commodity contract market requires for delivery. The practical numbers are .995 gold, .999 silver, and .9995 platinum and palladium.
A separate carve-out allows the American Gold, Silver, and Platinum Eagles even when they fall short of the bullion fineness test. Federal law requires an IRS-approved trustee or bank to hold physical possession of the metal, which rules out storing it at home. Contribution limits, the age-based required minimum distribution schedule, and the 10 percent early-withdrawal penalty all apply the same way they apply to a paper-asset IRA.
The rules at a glance
- Federal statute (IRC 408(m)) names four eligible metals: gold, silver, platinum, and palladium. Rhodium and iridium are not on the list, and cannot be added by a custodian.
- Bullion must meet the fineness a commodity contract market requires for delivery. In practice: 99.5 percent gold, 99.9 percent silver, 99.95 percent platinum, and 99.95 percent palladium.
- American Eagles in gold, silver, and platinum qualify under a separate United States coin carve-out under 31 USC 5112, even when purity falls below the bullion threshold.
- An IRS-approved trustee or bank must hold physical possession. Home storage counts as a taxable distribution and, in McNulty v. Commissioner (2021), the Tax Court agreed.
- The 2026 IRA annual contribution ceiling is 7,500 dollars, with an extra 1,100 dollars in catch-up for savers age 50 and older, indexed for inflation under SECURE 2.0.
- Required minimum distributions start at age 73 for people born between 1951 and 1959, and at age 75 for those born in 1960 or later. Roth IRAs carry no lifetime RMD.
- Distributions before age 59.5 face a 10 percent additional federal tax on top of ordinary income tax, subject to a fixed list of statutory exceptions in Publication 590-B.
- Self-dealing or use of the account by a disqualified person is a prohibited transaction under IRC 4975(c), which can disqualify the entire IRA in a single year.
- The account structure needs three parties: a self-directed IRA custodian, an IRS-approved depository, and a metals dealer. The saver never takes personal possession.
- Federal regulators actively police the metals markets. The 2020 CFTC order against JPMorgan cited spoofing across gold, silver, platinum, and palladium futures.
Rules for a precious metals IRA sit in two places. The tax code sets a general framework for any IRA. A short set of clauses inside Internal Revenue Code section 408(m) adds the eligibility and storage rules that make a metals account different.
This page walks each rule in the order a saver runs into them. Which metals qualify. Who holds the account. How much you can put in each year, and how you fund the balance beyond that. How the account is taxed on the way out. How federal enforcement fits around the whole picture.
Which law governs a precious metals IRA?
A precious metals IRA is a self-directed individual retirement account whose rulebook is federal law. The general IRA framework in IRC section 408 sets the contribution limits, the age-based distribution schedule, and the tax treatment. Subsection (m) of the same section carves out an exception to a broader ban on holding “collectibles” inside an IRA, and that exception is where the metals rules live.
The statute limits eligible metals to gold, silver, platinum, and palladium, at a purity level tied to what a regulated commodity contract market requires for delivery (source: 26 U.S.C. Section 408(m)). The IRS restates the same logic in its Issue Snapshot on collectibles held in individually directed plan accounts (source: IRS collectibles snapshot).
Worth knowing: the tax code itself does not print the numbers .995 or .999. It points to the commodity contract market for the minimum fineness required for delivery. Those numbers come from the COMEX standard, which is the reason writers cite them as the practical thresholds.
Which metals qualify, and what are the fineness minimums?
Four metals are eligible: gold, silver, platinum, and palladium. Each must meet a minimum fineness that a contract market requires for delivery of a regulated futures contract. Gold clears at 99.5 percent, silver at 99.9 percent, platinum at 99.95 percent, and palladium at 99.95 percent (source: IRC 408(m)(3)(B)). Two other precious metals often mentioned in the industrial world, rhodium and iridium, are absent from the statutory list. Neither is IRA-eligible, at any purity.
Bars are eligible when they come from a refiner that meets the relevant contract-market delivery standard. For gold and silver, the London Bullion Market Association sets the Good Delivery standard used across the global wholesale market (source: LBMA Good Delivery).
Sovereign bullion coins from major mints commonly meet the fineness test. The Canadian Silver Maple Leaf, the Austrian Silver Philharmonic, and the Canadian Platinum and Palladium Maple Leafs are widely accepted in IRA context. Verify each product against the current dealer or custodian list before you buy, since not every mint issue in a given year meets the same specification.
| Metal | Minimum fineness | Common eligible products |
|---|---|---|
| Gold | 99.5 percent | American Gold Eagle (via United States coin carve-out), approved refiner bars, Canadian Gold Maple Leaf |
| Silver | 99.9 percent | American Silver Eagle, Canadian Silver Maple Leaf, Austrian Silver Philharmonic, approved refiner bars |
| Platinum | 99.95 percent | Platinum American Eagle, Canadian Platinum Maple Leaf, approved refiner bars |
| Palladium | 99.95 percent | Palladium American Eagle, Canadian Palladium Maple Leaf, approved refiner bars |
| Rhodium, iridium | Not eligible at any purity | None; the statute lists only four metals |
Sources: 26 U.S.C. Section 408(m); IRS collectibles snapshot; LBMA Good Delivery. Coin specifications are industry-reported. Checked June 2026.
Why the American Eagles qualify at lower purity
The American Gold Eagle contains 22-karat gold, or 91.67 percent fineness, which is below the 99.5 percent threshold. It is still IRA-eligible. The reason sits in a separate part of the statute. IRC 408(m)(3)(A) treats certain coins “described in 31 USC section 5112” as not collectibles, without reference to the bullion fineness test at all (source: IRS collectibles snapshot).
The same carve-out covers the American Silver Eagle and the Platinum American Eagle. The Palladium American Eagle, added in 2017, qualifies under the bullion fineness test rather than the same coin clause, because it is a 99.95 percent purity issue. Two of the practical takeaways matter: no other 22-karat coin gets the same treatment automatically, and a coin that fails both tests, such as a graded numismatic issue outside the section 5112 list, is treated as a collectible on purchase.
Who holds the account, and where does the metal sit?
A precious metals IRA is a three-party arrangement. A self-directed IRA custodian, which must be a bank or an IRS-approved non-bank trustee, holds legal title to the account and handles tax reporting. A precious-metals dealer sells the coins or bars. An IRS-approved depository takes physical possession of the metal. The saver directs the choices but does not touch the metal while it stays inside the account.
The physical-possession requirement is written into the statute itself, not into a regulator’s guidance. IRC 408(m)(3) requires that eligible bullion be “in the physical possession of a trustee” described in the same section. That single clause is the reason a home-storage precious metals IRA is not a recognized structure.
The United States Tax Court applied the rule against the taxpayers in McNulty v. Commissioner, 157 T.C. 10 (2021). The court held that a taxpayer who acquired IRA metals through a self-directed IRA but stored them at home had received a taxable distribution of the entire cost of the coins. That decision is the leading precedent that treats home storage as taxable, and it draws directly from the physical-possession language of section 408(m).
| Role | Who fills it | What it does |
|---|---|---|
| Custodian | A bank or an IRS-approved non-bank trustee | Holds legal title to the IRA, executes buys and sells directed by the saver, files tax reports. |
| Depository | An IRS-approved vaulting facility | Takes physical possession of the metal, insures it, and segregates or commingles it based on the account election. |
| Dealer | A precious-metals dealer | Sources coins or bars, charges a spread over spot, and delivers metal to the depository on the custodian’s instruction. |
Sources: 26 U.S.C. Section 408(m); IRS collectibles snapshot; McNulty v. Commissioner, 157 T.C. 10 (2021). Checked June 2026.
2026 contribution limits and phase-out ranges
For tax year 2026, the annual IRA contribution limit is 7,500 dollars, up from 7,000 in 2025. Savers age 50 and older can add 1,100 dollars in catch-up, up from 1,000 in 2025. The catch-up is now indexed for inflation under SECURE 2.0, so a small step-up like this can recur in coming years. The combined limit at age 50 and above is 8,600 dollars (source: IRS, 2026 limits).
The contribution ceiling is deliberately small. That is why most metals IRAs are built by rollover from a workplace plan or another IRA rather than by fresh cash contribution. Two other ceilings shape planning. Roth IRA eligibility phases out between 153,000 and 168,000 dollars for a single filer in 2026, and between 242,000 and 252,000 dollars for a married couple filing jointly. Traditional IRA deductibility phases out at lower ranges when a contributor is covered by a workplace retirement plan.
| Rule | 2026 value | 2025 value, for context |
|---|---|---|
| Annual IRA limit (under 50) | 7,500 dollars | 7,000 dollars |
| Catch-up (age 50 and older) | 1,100 dollars | 1,000 dollars |
| Combined limit (age 50 and older) | 8,600 dollars | 8,000 dollars |
| Roth phase-out, single filer | 153,000 to 168,000 dollars | Prior-year range |
| Roth phase-out, married filing jointly | 242,000 to 252,000 dollars | Prior-year range |
| Traditional deduction phase-out, single, covered | 81,000 to 91,000 dollars | Prior-year range |
| Traditional deduction phase-out, MFJ, covered | 129,000 to 149,000 dollars | Prior-year range |
Source: IRS Newsroom, 2026 retirement plan and IRA limits (Notice 2025-67). Checked June 2026.
The calculator below estimates the base and catch-up capacity for a given household. Enter age and filing status to see the 2026 headroom.
Can you roll your account into a precious metals IRA? Eligibility checker
Most retirement money can move into a precious metals IRA once it is an eligible rollover distribution. Pick your account and situation for a general answer. Always confirm the specifics with your plan administrator or custodian.
General guidance only, not tax or financial advice. Eligibility depends on your specific plan document and IRS rules; confirm with your plan administrator and a tax advisor. A direct trustee-to-trustee transfer avoids the 60-day rule and 20% withholding.
Rollover rules: direct, indirect, and the 60-day window
Rollovers are how most metals accounts get funded, because 7,500 dollars a year buys very little physical metal. Two rollover routes exist. The direct route moves money custodian to custodian, without the saver receiving a check. No withholding applies and the 60-day rule does not run. The indirect route sends the money to the saver first, and the saver has 60 days to redeposit it into an IRA.
The indirect route from a qualified plan comes with a 20 percent mandatory federal withholding. To roll the full pre-tax balance into an IRA, the saver has to make up the withheld amount from other cash within the 60-day window. Most savers avoid that scenario by using the direct route from the start (source: IRS Publication 590-B).
The steps below outline the direct rollover most metals IRAs use.
- Confirm the source plan can move to an IRA. Common eligible sources include a former-employer 401(k), a 403(b), a governmental 457(b), the federal TSP, a traditional IRA, a SEP IRA, and a SIMPLE IRA past the two-year window.
- Open a self-directed IRA with a qualified custodian. The custodian must be a bank or an IRS-approved non-bank trustee. It holds legal title to the new account.
- Instruct the sending plan to transfer directly. The check or wire goes to the new custodian, not to the saver. That avoids the 60-day clock and the 20 percent withholding.
- Direct the custodian to purchase eligible metals. Choose products that meet the fineness minimum for the metal, and confirm the dealer, custodian, and depository each list the product as IRA-eligible.
- Confirm the depository holds the metal. Retain the depository confirmation and the annual statement for tax records.
Required minimum distribution rules for a precious metals IRA
Traditional precious metals IRAs follow the same RMD schedule as any traditional IRA. Under SECURE 2.0, the start age is 73 for people born from 1951 through 1959. The start age rises to 75 beginning in 2033 for those born in 1960 or later. Roth IRAs carry no required minimum distribution during the owner’s lifetime (source: IRS RMD FAQs).
Two mechanical points matter with a metals account. First, the required distribution can be paid in cash from other IRAs or from the sale of metal inside this one. Second, a saver can take an in-kind distribution of the physical metal itself. The fair market value at the time of distribution is still the taxable amount, and the IRA aggregation rules still apply.
Missing an RMD triggers an excise tax. SECURE 2.0 reduced the rate to 25 percent, or 10 percent if the shortfall is corrected within a two-year window.
The calculator below estimates the current-year RMD for a traditional IRA balance and age.
Precious metals IRA required minimum distribution (RMD) estimator
Once required minimum distributions begin (age 73 now, 75 starting 2033), you divide last year-end balance by an IRS life-expectancy factor. Most states tax the result as ordinary income, on top of federal tax. You can take a precious metals IRA RMD in cash or in metal.
Estimate only, not tax advice. Uses the IRS Uniform Lifetime Table (most owners). A spouse more than 10 years younger and sole beneficiary uses a different table. Roth IRAs have no lifetime RMD. Sources: IRS Publication 590-B (Table III); IRS RMD FAQs. Consult your tax advisor.
Consider a saver born in 1955 who reaches age 73 during 2028. Assume 400,000 dollars across all traditional IRAs on December 31 of the prior year. The RMD divisor for age 73 in the Uniform Lifetime Table is 26.5. The first-year RMD is 400,000 divided by 26.5, or 15,094 dollars.
The RMD can be paid from any traditional IRA the saver owns, including the metals IRA, so long as the total distributed for the year meets the required amount.
The figures above are illustrative, drawn from the Uniform Lifetime Table published in IRS Publication 590-B. Actual divisors depend on the taxpayer’s facts. This is not tax advice. Consult a licensed tax advisor for a specific situation.
Early withdrawal rules and the 10 percent additional tax
Distributions before age 59.5 face a 10 percent federal additional tax on top of ordinary income tax on the taxable portion. The additional tax comes from IRC section 72(t) and applies to precious metals IRAs the same way it applies to any other IRA. Because a metals IRA has no tax basis in a physical asset separate from the account itself, the distribution amount is the fair market value of the metal on the distribution date.
Publication 590-B lists a fixed set of exceptions. The list covers a saver who reaches 59.5, a written substantially-equal-periodic-payment plan under section 72(t), qualified higher-education expenses, and a small set of hardship categories. Only the portion that fits an exception avoids the additional tax. The list changes only when Congress amends the statute, so read the current version of Publication 590-B before relying on any category (source: IRS Publication 590-B).
Prohibited transactions and the disqualified-person list
IRC section 4975 lists transactions that would “disqualify” an IRA. The list covers sales, exchanges, leases, and services between the IRA and a “disqualified person,” who includes the owner, the owner’s spouse and lineal ascendants and descendants, and any entity in which such persons hold a controlling interest. Self-dealing, meaning the owner benefits personally from an IRA asset in a way not allowed by the account structure, sits at the center of this list.
The consequence is severe. If the IRS determines that a prohibited transaction occurred, the IRA loses its tax-favored status as of the first day of that year. The entire fair market value of the account becomes a taxable distribution, and the 10 percent additional tax applies if the owner is under 59.5.
Common self-dealing examples include taking personal possession of IRA metal, using an IRA-owned coin as personal jewelry, or letting a family member use it commercially. The IRS Snapshot flags each of these patterns explicitly.
Worth knowing: the prohibited-transaction rules apply from the day of the act, not from the day the IRS finds it. That is what makes home storage and unauthorized use so risky, quite apart from any audit exposure.
Who polices the market, and what enforcement looks like
Three federal agencies matter for precious-metals investors. The Commodity Futures Trading Commission (CFTC) oversees futures markets, including gold, silver, platinum, and palladium contracts. The Securities and Exchange Commission (SEC) regulates securities, so metals-linked investment contracts fall in its lane when the product sold is a security rather than physical metal. The Federal Trade Commission (FTC) handles deceptive and unfair practices in metals marketing and sales.
The clearest recent example is the CFTC order against JPMorgan. In September 2020, the CFTC required JPMorgan Chase and named subsidiaries to pay a total of 920.2 million dollars for spoofing and manipulation. The order cited “gold, silver, platinum, palladium, Treasury note, and Treasury bond futures contracts.” It was the largest monetary relief the CFTC had ever imposed at the time.
The total broke into three parts: 311,737,008 dollars of restitution, 172,034,790 dollars of disgorgement, and a 436,431,811 dollar civil monetary penalty (source: CFTC release 8260-20).
The takeaway for a saver is not that regulators solve every risk. It is that a compliant custodian and an approved depository sit inside a regulated pipeline, and unregulated sellers do not. Any pitch that promises guaranteed returns, or that leans on the fear of an imminent market collapse, is running exactly the pattern the FTC warns about.
When a precious metals IRA is a bad idea, even if the rules allow it
The federal rules make a precious metals IRA legal for anyone with an eligible retirement account. That is a floor, not a fit. Several patterns make the account the wrong tool even when it is technically available. There is no CTA in this section on purpose.
- A small balance against fixed annual fees. Setup, custodian, storage, and the dealer spread are largely fixed. On a small account they can eat a large share of the balance. A saver with a modest balance often does better keeping the money in a low-cost paper IRA.
- A short holding horizon. Metals are volatile in the short term. Selling to move on triggers the dealer spread again. Any distribution before age 59.5 also carries the 10 percent additional tax under section 72(t) unless a statutory exception applies.
- Concentration risk. Placing an entire retirement balance in a single asset class removes diversification. Metals sit alongside stocks, bonds, and cash in a plan, not in place of them.
- A pitch that promises a guaranteed return. Nobody can predict where metal prices will move. A salesperson who guarantees a gain is running the pattern the FTC and CFTC have warned against for years.
- Custodian or depository not named. A dealer who cannot name the custodian and the depository in writing is skipping the compliance structure that makes the account work in the first place.
If one of these describes your situation, slowing down is the sensible call. Discuss the specifics with a licensed tax or financial advisor before signing anything.
Questions readers ask about these rules
What is the legal basis for a precious metals IRA?
IRC section 408 sets the general IRA framework. Subsection (m) is the specific rule that treats certain gold, silver, platinum, and palladium coins and bullion as not “collectibles,” which is what lets them sit inside an IRA. The subsection also requires that the metal be in the physical possession of the trustee (source: 26 U.S.C. Section 408(m)).
Are rhodium and iridium allowed in a precious metals IRA?
No. The statute lists only gold, silver, platinum, and palladium. Rhodium and iridium are not on the list and cannot be added by a custodian, regardless of purity. Any dealer pitch to the contrary is inaccurate.
Can I keep IRA metals at home if I sign a special document?
No. Federal statute requires physical possession by an IRS-approved trustee. The Tax Court applied that rule against the taxpayer in McNulty v. Commissioner (2021), holding that home storage of IRA metal counted as a taxable distribution. A home-storage precious metals IRA is not a recognized structure.
What is the 2026 IRA contribution limit?
The 2026 base limit is 7,500 dollars, with an extra 1,100 dollars in catch-up for savers age 50 and older, for a combined 8,600 dollars. The catch-up is indexed for inflation under SECURE 2.0 (source: IRS, 2026 limits).
When do required minimum distributions start for a precious metals IRA?
Age 73 for people born from 1951 through 1959, and age 75 for people born in 1960 or later. Roth IRAs have no required minimum distribution during the owner’s lifetime, so a Roth precious metals IRA carries no RMD (source: IRS RMD FAQs).
What is the penalty for withdrawing before 59.5?
A 10 percent federal additional tax under IRC section 72(t), on top of ordinary income tax on the taxable portion. Publication 590-B lists the exceptions, which include separation from service after age 55 for workplace plans, substantially equal periodic payments under section 72(t), qualified higher-education expenses, and certain hardship categories (source: IRS Publication 590-B).
Do American Eagle coins really qualify at lower purity?
Yes. The American Gold Eagle contains 22-karat gold (91.67 percent), yet it is IRA-eligible because IRC 408(m)(3)(A) treats coins “described in 31 USC section 5112” as not collectibles. The American Silver Eagle and Platinum American Eagle sit under the same clause. Other sub-99.5 percent bullion coins do not get the same automatic treatment.
How is a prohibited transaction different from a regular tax mistake?
A prohibited transaction under IRC 4975 disqualifies the entire IRA as of the first day of the year in which it occurred. That is different from an ordinary reporting error, which usually leads to a corrected return. The consequence is why self-dealing, home storage, or personal use of IRA metal is treated as a red line rather than a warning.
Sources
- Cornell Legal Information Institute, 26 U.S.C. Section 408 (including subsection (m)). Checked June 2026.
- IRS Issue Snapshot, Investments in collectibles in individually directed qualified plan accounts. Checked June 2026.
- IRS Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs). Checked June 2026.
- IRS Newsroom, 2026 retirement plan and IRA limits (Notice 2025-67). Checked June 2026.
- IRS, Required Minimum Distributions FAQs. Checked June 2026.
- London Bullion Market Association, Good Delivery standard. Checked June 2026.
- U.S. Commodity Futures Trading Commission, Release 8260-20 (JPMorgan spoofing order). Checked June 2026.
