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Last updated: July 22, 2026 · By White Metal Resources Editorial
Quick answer: A SEP precious metals IRA is a Simplified Employee Pension IRA that a self-employed person or small-business owner funds with employer contributions. The account then invests in IRS-approved physical metals rather than stocks or funds. The same federal rules apply as for a personal precious metals IRA.
What changes is how the account is funded and how much. For tax year 2026 the SEP annual cap is $72,000, or 25 percent of compensation, whichever is less. That sits well above the $7,500 personal IRA limit. A licensed custodian administers the account. An IRS-approved depository stores the metal, because home storage is not allowed. Silver must meet a .999 fineness minimum, platinum and palladium .9995, and gold .995.
Short on time? The essentials
- A SEP IRA is a traditional IRA funded by an employer, including a sole proprietor funding their own account. It can hold IRS-approved physical metals under the same 408(m) rules that govern any precious metals IRA.
- The 2026 SEP contribution cap is $72,000 per participant, or 25 percent of pay, whichever is less. In 2025 the cap was $70,000. Source: IRS COLA table (Notice 2025-67).
- SEP eligible compensation is capped at $360,000 for 2026, up from $350,000 in 2025. The minimum compensation threshold to be a covered employee is $800 for 2026.
- Only the employer contributes to a traditional SEP. Under SECURE 2.0, some providers now offer Roth SEP options where employer contributions can be treated as Roth if the plan allows.
- Fineness minimums are silver .999, platinum and palladium .9995, and gold .995. The American Silver, Platinum, and Gold Eagles qualify under a separate United States coin carve-out.
- Required minimum distributions start at age 73 today, rising to 75 in 2033 for people born in 1960 or later. A withdrawal before 59.5 usually triggers a 10 percent federal additional tax.
- Metals must sit at an IRS-approved depository, not at home. The Tax Court applied the physical-possession rule against home storage in McNulty v. Commissioner in 2021.
- Fixed annual custodian and storage fees, plus the dealer spread on the metal, erode small accounts most. The white metals with industrial demand have historically been more volatile than gold.
- A one-page written plan document (Form 5305-SEP) is enough for most self-employed people to establish the SEP with a metals custodian, then fund it before the tax-filing deadline.
This page is for the self-employed saver weighing whether to combine a SEP IRA with physical white metals. Below we cover who qualifies, how the 2026 contribution cap works, which metals the IRS allows and at what purity, the setup steps, and the fees and risks that matter most. Every figure traces to an IRS, statute, LBMA, or CFTC source, cited inline.
What is a SEP precious metals IRA?
A SEP precious metals IRA is a Simplified Employee Pension IRA that holds IRS-approved physical metal instead of stocks or mutual funds. Under the tax code, a SEP IRA is a traditional IRA that receives employer contributions from a business, including a one-person business funding its own account.
The mechanics of the metals side match any precious metals IRA. A self-directed custodian holds legal title. An IRS-approved depository stores the coins or bars. A dealer supplies the metal. You direct the choices, but you never take personal possession while the metal remains inside the IRA.
Two IRS sources anchor the structure. The SEP framework is at IRS, Simplified Employee Pension plan (SEP). The eligibility of physical metals sits at 26 U.S.C. Section 408(m), backed by the IRS collectibles snapshot.
Worth knowing: the SEP status changes the funding rules, not the metal rules. Fineness, storage, and distribution rules are the same as a personal traditional IRA holding metal. What changes is who contributes, when, and how much.
Who can open one, and who cannot
Any US business owner can establish a SEP, including a sole proprietor with no employees. That covers freelancers, independent contractors, consultants, single-member LLCs, partnerships, S-corps, and C-corps. The IRS is explicit that a business of any size, even self-employed, can establish a SEP.
The catch for a business with employees is that the SEP formula must apply uniformly. If the owner contributes 15 percent of pay to their own SEP IRA, the same percentage must go to every eligible employee's SEP IRA. That uniformity rule keeps costs low and paperwork short, but it also means owner-only structures capture most of the SEP metals interest.
An employee is eligible when three tests are met. The worker must be age 21 or older. The worker must have served the employer in at least three of the last five years. The worker must have earned the SEP minimum of $800 in 2026. Employers can loosen those thresholds but cannot tighten them.
| Test | Statutory rule | Notes |
|---|---|---|
| Business type | Any US business, including sole proprietor | Freelancers, single-member LLCs, and partnerships all qualify. |
| Age of employee | 21 or older | Employer may set a lower age. |
| Years of service | Worked in 3 of the last 5 years | Employer may set a shorter service window. |
| Minimum pay | $800 in 2026 (up from $750 in 2025) | Employer may set a lower amount. |
| Uniform formula | Same percentage of pay for all eligibles | Cannot favor the owner over rank-and-file staff. |
Source: IRS SEP plan page; IRS COLA table for 2026 (Notice 2025-67). Checked June 2026.
How much can you contribute in 2026?
For tax year 2026, the SEP annual employer contribution cap is the lesser of 25 percent of compensation or $72,000 per participant, up from $70,000 in 2025. That $72,000 cap is tied to the Section 415 defined-contribution limit and rises with cost-of-living adjustments each year.
Compensation used to compute the contribution is capped at $360,000 in 2026, up from $350,000 in 2025. For self-employed savers, compensation means net self-employment earnings. From that figure you subtract one-half of self-employment tax and the SEP contribution itself. The effective rate for a sole proprietor works out to roughly 20 percent of net earnings, not 25 percent.
Personal IRA contributions are separate. A SEP participant can still make their own IRA contribution up to $7,500 for 2026, plus a $1,100 catch-up at age 50 and over, subject to the usual deduction phase-outs (source: IRS, 2026 limits). The SEP room and the personal IRA room stack for the same person.
| Figure | 2026 | 2025 |
|---|---|---|
| SEP annual dollar cap | $72,000 | $70,000 |
| Maximum eligible compensation | $360,000 | $350,000 |
| Minimum compensation to be eligible | $800 | $750 |
| Percentage cap | 25 percent of pay | 25 percent of pay |
| Effective self-employed rate | Roughly 20 percent of net earnings | Roughly 20 percent of net earnings |
| Personal IRA limit (stacks) | $7,500, plus $1,100 catch-up at 50+ | $7,000, plus $1,000 catch-up at 50+ |
Source: IRS COLA table (Notice 2025-67); IRS SEP plan page; IRS Newsroom 2026 limits. Checked June 2026.
Which metals qualify, and at what fineness?
A SEP metals IRA follows the same eligibility test as any IRA holding physical metal. Section 408(m) of the tax code lists four metals: gold, silver, platinum, and palladium. Each must meet a minimum fineness drawn from commodity-market delivery standards. No other metal qualifies at any purity.
The recognized minimums are silver .999, platinum .9995, and palladium .9995, with gold at .995 (source: 26 U.S.C. Section 408(m)). Bars must come from a refiner that meets the relevant delivery standard. The London Bullion Market Association sets the Good Delivery standard for gold and silver bars (source: LBMA Good Delivery).
The American Silver, Platinum, and Gold Eagles qualify under a separate carve-out for United States coins in 31 USC Section 5112, even where the Gold Eagle sits below the .995 threshold at 22-karat purity. The Canadian Silver, Platinum, and Palladium Maple Leaves and the Austrian Silver Philharmonic are widely accepted alongside them. Rhodium and iridium are not on the statutory list, so they never qualify.
| Metal | Minimum fineness | Common eligible products |
|---|---|---|
| Silver | .999 | American Silver Eagle, Canadian Silver Maple Leaf, Austrian Silver Philharmonic, approved refiner bars |
| Platinum | .9995 | Platinum American Eagle, Canadian Platinum Maple Leaf, approved refiner bars |
| Palladium | .9995 | Palladium American Eagle, Canadian Palladium Maple Leaf, approved refiner bars |
| Gold | .995 (American Gold Eagle qualifies via the US coin carve-out) | American Gold Eagle, approved refiner bars |
| Not eligible | n/a | Rhodium, iridium, graded numismatic coins outside the US carve-out, generic rounds below the fineness minimum |
Sources: 26 U.S.C. Section 408(m); IRS collectibles snapshot; LBMA Good Delivery. Coin specifications are industry-reported. Checked June 2026.
How to open a SEP precious metals IRA, step by step
Most self-employed savers can open and fund a SEP metals IRA using a written plan on IRS Form 5305-SEP. The steps below outline the path a sole proprietor typically follows.
- Choose a self-directed IRA custodian that accepts metals. The custodian holds legal title and files IRS reporting. Not every SEP-friendly custodian supports physical metals, so confirm the metals option in writing before you open.
- Adopt a written SEP plan document. IRS Form 5305-SEP is the model plan for most single-employer situations. You keep it on file, you do not file it with the IRS. See the IRS SEP page for the exclusions that force a prototype document instead.
- Open the SEP IRA account with the custodian. The account is a traditional IRA titled to you, with SEP status noted on the paperwork. If you have eligible employees, each also needs a SEP IRA with a custodian.
- Fund the SEP by the tax-filing deadline, including extensions. A sole proprietor can contribute up to 25 percent of net earnings, capped at the annual dollar limit, by the extended due date of the business tax return.
- Direct the custodian to buy IRS-approved metals. Choose common .999 silver, .9995 platinum or palladium, or .995 gold from approved sources. Favor bullion over premium numismatic coins to protect the dealer spread.
- Have the depository store the metal. The approved depository takes physical possession, which keeps the account compliant with the 408(m) physical-possession rule.
Use the eligibility calculator below to see whether an existing SEP, 401(k), 403(b), or other plan can move into a metals IRA before you commit.
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.
Picking a company that explains every fee up front is the first step. Get the free precious metals IRA company checklist.
Deadlines, employees, and Roth SEP options
SEP timing is friendlier than a solo 401(k). You can adopt the plan and make the contribution as late as the tax-filing deadline for the business, including extensions. For a calendar-year sole proprietor filing an extension in 2026, that pushes the contribution decision into October 2026, useful when income is uncertain.
If you have employees who meet the eligibility tests, contributions to their SEP IRAs are mandatory once you contribute to your own. The same uniform percentage of pay applies. Employees own their SEP IRA balances immediately and can invest them as they choose, so an employee's SEP IRA does not have to hold metals just because yours does.
SECURE 2.0 added a Roth SEP option. Under that provision, employer contributions can be designated as Roth if the plan document allows and the participant chooses. Not every custodian supports Roth SEP yet, and Roth contributions are included in income the year they are made. Confirm the option is available before assuming you can use it.
What fees and taxes to expect
A SEP metals IRA carries costs an index fund does not. Knowing them up front separates a fair account from a poor one.
Expect a one-time setup fee, an annual custodian or administration fee, and an annual storage fee paid to the depository. On top of those sits the dealer spread, the gap between what you pay for the metal and what it would sell for the same day. The spread is usually the largest lifetime cost, and it is the one least often disclosed clearly.
Traditional SEP contributions and earnings grow tax-deferred. Withdrawals are taxable as ordinary income in the year received. A withdrawal before age 59.5 with no qualifying exception adds a 10 percent federal additional tax on top (source: IRS Publication 590-B). Required minimum distributions start at age 73 today, rising to 75 in 2033 for people born in 1960 or later (source: IRS RMD FAQs).
Picture a sole proprietor with $200,000 of net self-employment earnings in 2026 who wants to fund a SEP metals IRA. The effective contribution rate for a self-employed saver runs about 20 percent of net earnings, since 25 percent is applied to compensation net of the deductible half of self-employment tax and the SEP contribution itself.
- Approximate SEP contribution room: $200,000 multiplied by 20 percent equals about $40,000 for the year, well below the $72,000 dollar cap. Actual room depends on the Schedule SE math and Publication 560 worksheets.
- All-in annual account cost estimate: suppose the custodian charges $80 and segregated storage costs $150, totaling $230. That is $230 divided by a $40,000 balance, or roughly 0.6 percent per year. On a $10,000 balance the same $230 would be about 2.3 percent per year.
- One-time dealer spread on the metal: a 5 percent spread on a $40,000 purchase is a one-time cost of $2,000, paid up front and again, in part, when you sell.
The figures above are illustrative, not quotes from any company. They show a structural point: fixed annual fees and the dealer spread both punish small accounts hardest, and the self-employed 20 percent rate is what actually caps a mid-sized book of business. Ask for the fee schedule and the spread in writing before you commit, and keep the account clean for your spouse or heirs later. This is an illustration, not financial advice; consult a licensed advisor for your situation.
Risks, market policing, and honest tradeoffs
The SEP metals IRA structure is legitimate and IRS-sanctioned. The risk is rarely the account. It is volatility, cost, and the sales pitch attached to the metal.
On volatility, the white metals with industrial demand, silver and the platinum-group metals, have historically shown larger short-term price swings than broad stock or bond indices. That is a documented historical characteristic, not a prediction. Nobody can accurately predict where prices will go in the future, and past performance is not a guarantee of future results.
On policing, federal regulators are active in metals markets. The Commodity Futures Trading Commission oversees metals futures and brings enforcement against manipulation and fraud. In a 2020 order, the CFTC required JPMorgan Chase and subsidiaries to pay a total of $920.2 million over spoofing. The regulator said that conduct spanned gold, silver, platinum, and palladium futures, among others (source: CFTC release 8260-20).
The pattern to watch is a pitch that pushes high-markup premium or rare coins over common bullion, or a free-metal promotion that buries cost in the coin price. Coin upsells are where SEP buyers lose the most, because a business owner writing a five-figure check is a large-ticket target.
When a SEP metals IRA is a bad idea
A balanced read has to name the situations where this account works against you. For several self-employed savers, a SEP metals IRA is the wrong move, and saying so plainly is part of an honest guide.
- You have employees you would rather not fund. The uniform-percentage rule means any owner contribution triggers matching percentages for eligible staff. A Solo 401(k) or a group 401(k) may fit better if you want owner-only funding with eligible employees on the payroll.
- Your net earnings are small against the fee drag. Setup, annual custodian, storage, and the dealer spread are largely fixed. On a small account those costs eat a large share of the balance, so a modest SEP metals holding can struggle to ever come out ahead.
- You may need the money within a few years. White metals are volatile short-term, and selling means crossing the dealer spread again. Before age 59.5 you also owe the 10 percent federal additional tax on top of ordinary income tax.
- You want to maximize elective deferrals. A SEP has no employee salary-deferral option in most cases. A Solo 401(k) lets a self-employed saver combine the $24,500 elective deferral for 2026 with an employer profit-sharing contribution, which can beat a SEP at the same income level.
- You are chasing a guaranteed return. Nobody can predict where metal prices will go. A pitch that promises guaranteed gains is a warning sign, not an opportunity, and is exactly the pattern regulators have acted on.
If one of these describes you, slowing down is the sensible call. The fixed annual costs and the dealer spread both punish a short or small position more than most savers expect. There is no CTA in this section on purpose.
How to choose a custodian and dealer
The company you pick shapes your fees, your metal choices, and your risk of an upsell. A short checklist filters most of the field.
Verify the basics yourself, not from the sales call. Confirm the custodian supports both SEP status and physical metals in writing. Check the dealer's Better Business Bureau rating and accreditation date, ask how many years the firm has operated, and ask for fees in writing before you commit. Favor firms that present common bullion plainly and do not steer you toward premium numismatic coins. Confirm the depository is named and approved.
What you will need to verify: a published BBB profile, a clear written fee schedule, SEP support on the custodian's account paperwork, a named IRS-approved depository, and a salesperson who answers "who is this not for" honestly. A firm that dodges any of those is telling you something. See how to choose a precious metals IRA company and how the best precious metals IRA companies compare.
SEP precious metals IRA questions, answered
Can a self-employed person open a SEP precious metals IRA?
Yes. The IRS is explicit that a business of any size, even self-employed, can establish a SEP. A sole proprietor with no employees uses IRS Form 5305-SEP as the plan document. You then open a SEP IRA with a self-directed custodian that supports metals. The custodian purchases IRS-approved coins or bars and sends them to an approved depository.
What is the 2026 SEP contribution limit for precious metals?
For tax year 2026, the SEP employer contribution cap is the lesser of 25 percent of compensation or $72,000, up from $70,000 in 2025. Maximum eligible compensation is capped at $360,000. For a self-employed saver, the effective rate on net earnings works out to about 20 percent after adjusting for self-employment tax and the SEP contribution itself.
Can I roll an existing SEP IRA into a metals SEP IRA?
Yes. A direct transfer moves an existing SEP IRA custodian to custodian, with no tax, no withholding, and no 60-day deadline. This is the usual funding route for a metals SEP because the annual contribution limit alone rarely buys enough metal to matter. Confirm the new custodian supports SEP status before initiating the transfer.
What metals qualify inside a SEP IRA?
Only gold, silver, platinum, and palladium that meet the fineness minimums qualify: silver .999, platinum and palladium .9995, and gold .995. The American Silver, Platinum, and Gold Eagles qualify under a separate United States coin carve-out. Rhodium and iridium are not on the statutory list and never qualify at any purity.
If I have employees, do I have to fund their SEP too?
If your employees meet the eligibility tests, contributions to their SEP IRAs are mandatory once you contribute to your own. The same uniform percentage of pay applies to every eligible employee, including you. Employees own their SEP IRA balances immediately and can invest them as they choose, so an employee's SEP IRA does not have to hold metals just because yours does.
Can a SEP IRA be a Roth SEP holding metals?
SECURE 2.0 allows a Roth SEP option, so employer contributions can be designated as Roth if the plan document permits and the participant chooses. Not every custodian supports Roth SEP yet, and the Roth contribution is included in income the year it is made. Confirm the option is available before assuming you can use it.
Can I store the metal at home if I own the business?
No. Federal law requires an IRS-approved trustee to hold physical possession of the metal, and self-dealing by a disqualified person is a prohibited transaction. Keeping SEP IRA metal at home is treated as a distribution, taxable and possibly penalized. The Tax Court applied the physical-possession rule against home storage in McNulty v. Commissioner in 2021.
When are SEP contributions due for tax year 2026?
SEP contributions can be made as late as the tax-filing deadline for the business, including extensions. For a calendar-year sole proprietor filing an extension in 2026, that pushes the contribution decision into October 2026. That flexibility makes a SEP useful when income is uncertain, because you can size the contribution after the year closes.
Sources
- IRS, Simplified Employee Pension plan (SEP). Checked June 2026.
- IRS, COLA Increases for Dollar Limitations on Benefits and Contributions. Checked June 2026.
- IRS Newsroom, 2026 retirement plan and IRA limits (Notice 2025-67). Checked June 2026.
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements. Checked June 2026.
- IRS, Required Minimum Distributions FAQs. Checked June 2026.
- IRS, Investments in collectibles in individually directed qualified plan accounts. Checked June 2026.
- Cornell Legal Information Institute, 26 U.S.C. Section 408. Checked June 2026.
- London Bullion Market Association, Good Delivery. Checked June 2026.
- U.S. Commodity Futures Trading Commission, Release 8260-20 (JPMorgan order). Checked June 2026.
