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Last updated: July 13, 2026 · By White Metal Resources Editorial
Quick answer: A precious metals IRA is a self-directed individual retirement account that holds IRS-approved physical gold, silver, platinum, or palladium instead of stocks or funds. The tax rules match a traditional or Roth IRA. A licensed custodian administers the account and an approved depository holds the metal, because home storage is not allowed. Each metal has its own fineness minimum, and only these four are eligible under federal law.
Short on time? The essentials
- A precious metals IRA works like any IRA. It holds physical gold, silver, platinum, or palladium instead of shares.
- Four metals are eligible: gold at .995 fineness, silver at .999, platinum at .9995, and palladium at .9995.
- American Gold, Silver, and Platinum Eagles qualify under a separate carve-out for United States coins.
- The 2026 IRA contribution limit is $7,500, plus a $1,100 catch-up at age 50 and over.
- Required minimum distributions start at age 73 today, rising to 75 in 2033 for people born in 1960 or later.
- A licensed self-directed IRA custodian and an IRS-approved depository are required. Keeping the metal at home is a taxable distribution.
- Silver, platinum, and palladium have larger industrial demand than gold, which has historically made their prices more volatile.
- Fees include setup, an annual custodian charge, storage, and the dealer's spread on the metal you buy.
- Federal regulators police these markets. A 2020 CFTC order against JPMorgan cited gold, silver, platinum, and palladium futures.
- Verify the custodian, the depository, and the fee schedule in writing before you commit any retirement money.
This page explains a precious metals IRA in plain terms. Below we cover what the account is, which four metals qualify, how it differs from a regular retirement plan, how you fund it, and the federal rules that govern it in 2026. Fees, risks, and honest limits sit near the end. Every figure traces to an IRS, statute, LBMA, or CFTC source, cited inline.
What is a precious metals IRA and how does it work?
A precious metals IRA is a self-directed individual retirement account that owns physical gold, silver, platinum, or palladium instead of paper assets. The tax treatment is the same as a traditional or Roth IRA. What changes is the asset held inside. In place of shares or fund units, the account owns metal that meets IRS purity rules and sits in a regulated vault.
Three parties run the account. A custodian, a bank or IRS-approved non-bank trustee, holds legal title and files the tax paperwork. A dealer sells you the metal at a price you accept in writing. A depository stores the metal on behalf of the account. You direct every choice, but you never touch the metal while it stays inside the IRA.
Federal law names the four metals. IRC Section 408(m) lists gold, silver, platinum, and palladium as the only precious metals eligible in an IRA (source: 26 U.S.C. Section 408(m)). Each has a minimum fineness drawn from commodity-market delivery standards. Rhodium and iridium are not on the list and never qualify, regardless of purity.
Worth knowing: a precious metals IRA is a wrapper, not a product. The account structure is standard. The real judgment calls are which metals and which specific coins or bars, which custodian, which depository, and what it all costs each year.
Which four metals qualify, and at what fineness?
Only four metals qualify: gold, silver, platinum, and palladium. Each has a purity floor set by reference to the delivery standard on commodity futures markets. That is the practical rule the IRS applies to bullion in an IRA (source: IRS collectibles snapshot).
The recognized minimums are gold .995, silver .999, platinum .9995, and palladium .9995. 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).
Sovereign coins from major national mints commonly qualify. The American Silver, Gold, and Platinum Eagles are allowed under a separate carve-out for United States coins under 31 U.S.C. Section 5112. That is why the American Gold Eagle qualifies at .9167 fineness even though the general gold floor is .995. Numismatic or graded "rare" coins outside that carve-out are treated as collectibles and do not qualify.
| Metal | Minimum fineness | Common eligible products |
|---|---|---|
| Gold | .995 | American Gold Eagle (via United States coin carve-out at .9167), Canadian Gold Maple Leaf, approved refiner bars |
| 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 |
| Not eligible | n/a | Rhodium, iridium, numismatic or graded "rare" coins, 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.
Platinum and palladium sit in a different category than gold and silver in one respect. Both are platinum-group metals with heavy industrial use, including automotive catalytic converters, electronics, and chemical catalysis. Because most of their demand is industrial, their prices respond to manufacturing cycles as well as investment flows. That is a documented structural characteristic of the market. It is not a forecast. See platinum IRAs, palladium IRAs, and white metals explained for the detail on each.
How is it different from a regular IRA?
The tax wrapper is the same. The custody and paperwork requirements are heavier. The costs are structured differently, and the assets do not throw off dividends or interest.
A regular IRA at a broker holds stocks, bonds, mutual funds, or exchange-traded funds. The broker acts as the custodian, and the assets sit in electronic form. A precious metals IRA has to use a self-directed IRA custodian and an approved depository, because physical metal exists off the ledger and needs a vault. That extra layer is why fees look different.
The return profile is also different. Stocks and bonds pay dividends and interest. Physical metals do not pay income of any kind. The account gains value only when the metal appreciates, and loses value when the metal falls. Silver, platinum, and palladium have historically shown larger short-term swings than gold, because industrial demand adds a second driver on top of investment flows. Past volatility is not a forecast.
| Feature | Precious metals IRA | Traditional stock-and-bond IRA |
|---|---|---|
| Asset held | IRS-approved physical gold, silver, platinum, or palladium | Stocks, bonds, mutual funds, ETFs |
| Custodian type | Self-directed IRA custodian (bank or IRS-approved non-bank trustee) | Broker-dealer or bank |
| Storage | IRS-approved depository (home storage not allowed) | Electronic, at the broker |
| Income during holding | None (no dividends or interest from physical metal) | Possible dividends, interest, capital gain distributions |
| Fee mix | Setup, annual custodian, annual storage, dealer spread | Expense ratios, commissions (often near zero for ETFs) |
| 2026 contribution limit | $7,500, plus $1,100 catch-up at 50 and over | $7,500, plus $1,100 catch-up at 50 and over |
| RMD rules | Same rules: age 73 today, rising to 75 in 2033 | Same rules: age 73 today, rising to 75 in 2033 |
Sources: 26 U.S.C. Section 408(m); IRS Publication 590-B; IRS Newsroom 2026 limits (Notice 2025-67). Checked June 2026.
How do you fund a precious metals IRA?
Most savers fund one by moving money from an existing retirement plan. Fresh cash contributions are rare, because the 2026 annual contribution limit is small next to the cost of physical metal.
A direct transfer or direct rollover moves funds custodian to custodian, with no tax and no withholding at the time of the move. An indirect rollover puts the money in your hands first, and you must redeposit the full amount within 60 days or it becomes a taxable distribution. The direct route also avoids the 20% mandatory withholding that applies to many workplace-plan payouts.
The steps below outline the direct route most savers follow.
- Confirm your source plan is eligible. Check that your 401(k), 403(b), 457(b), TSP, IRA, or other plan can move to an IRA and reach a distributable event.
- Open a self-directed IRA with a custodian. The custodian holds legal title on the account and handles IRS reporting for you.
- Request a direct transfer or direct rollover. Have the funds sent custodian to custodian so the 60-day deadline and the 20% withholding never apply.
- Choose IRS-approved metal. Pick coins or bars that meet the fineness rule, and favor common bullion over premium numismatic coins.
- Have the depository take physical possession. An approved depository stores the metal for the account, which keeps it compliant with the statute.
Common funding sources each have their own rules. The table below shows which sources can move into a precious metals IRA.
| Source plan | Eligible to roll? | Notes |
|---|---|---|
| 401(k) from a former employer | Yes | Direct rollover skips the 20% mandatory withholding. |
| 403(b) at a school or nonprofit | Yes | Eligible rollover distribution, direct route recommended. |
| 457(b) at a government employer | Yes | Governmental 457(b) plans can roll to an IRA at a distributable event. |
| TSP for federal employees | Yes | Moves as an eligible rollover distribution to an IRA. |
| Traditional IRA | Yes | Direct transfer custodian to custodian, no tax, no withholding. |
| Roth IRA | Yes, to a Roth precious metals IRA | Roth stays Roth. Do not mix Roth and pre-tax funds. |
| SEP IRA | Yes | Moves under the same rollover rules as any IRA. |
| SIMPLE IRA | Yes | Generally after the two-year participation window. |
Source: IRS Publication 590-B. Checked June 2026.
For source-specific walk-throughs, see rolling over a 401(k), rolling over a TSP, moving a traditional IRA, and the full account setup for a complete walkthrough.
What IRS rules govern the account in 2026?
The same federal rules that govern any IRA govern a precious metals IRA. Four of them decide how the account behaves.
2026 contribution limits
For tax year 2026, the IRA annual contribution limit is $7,500, with a $1,100 catch-up for savers age 50 and over (source: IRS Newsroom, 2026 limits). Rollovers, not fresh contributions, fund most accounts. See the full 2026 rules for the phase-out income ranges on Roth contributions and traditional deductions.
Required minimum distributions
A traditional precious metals IRA follows the required minimum distribution rules. The current start age is 73 for people who reach 72 after December 31, 2022 (source: IRS RMD FAQs). The start age rises to 75 in 2033 for people born in 1960 or later. A Roth IRA has no required minimum distribution during the owner's lifetime. Try the calculator further below to estimate a first-year RMD.
Early-withdrawal penalty
A distribution before age 59.5 with no qualifying exception carries a 10% federal additional tax on top of ordinary income tax (source: IRS Publication 590-B). Exceptions include death, disability, certain medical expenses, first-home purchase up to $10,000, and substantially equal periodic payments under IRC 72(t). Verify the current list against Publication 590-B before you rely on any exception.
Custodian and depository, no home storage
Federal law requires an IRS-approved trustee to hold physical possession of the metal (source: IRC Section 408(m)(3)). Keeping IRA metal at home is treated as a distribution, with tax and possible penalty. The United States Tax Court applied this rule against the taxpayers in McNulty v. Commissioner in 2021. A "home storage IRA" is not a recognized IRS structure. See why home storage is not allowed.
The calculator below estimates a first-year required minimum distribution from a traditional precious metals IRA based on your account balance and life-expectancy factor.
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.
What does the account really cost?
A precious metals IRA carries costs that a stock-and-bond IRA does not. Knowing them before you fund the account is the difference between a fair setup and a poor one.
Expect four cost lines: a one-time setup fee, an annual custodian or administration fee, an annual storage fee paid to the depository, and the dealer's spread. The spread is the gap between what you pay for a coin or bar and what it would sell for the same day. Across the life of the account, the spread is usually the largest cost, and it is the one least often disclosed in a clear form.
Storage comes in two forms. Segregated storage keeps your exact coins or bars apart from other customers' and costs more. Commingled storage pools metal of the same type and costs less. The white metals add one wrinkle. Silver is bulkier than gold for the same dollar value, so storage can run higher per dollar invested on a silver-heavy account. Platinum and palladium storage falls closer to gold.
The trade-off: low published fees can hide a wide dealer spread, and a fair spread can sit beside higher storage. Compare the all-in cost, not one line item. See silver IRA fees and custodian fees vs dealer markups for the deeper breakdown.
Picture a saver who rolls $75,000 into a precious metals IRA. Suppose the annual cost runs $200 in custodian fees and $150 in storage, which is $350 per year in fixed costs. Here is what that means at different account sizes.
- On $75,000: $350 divided by $75,000 is about 0.47% per year in fixed costs.
- On $15,000: the same $350 divided by $15,000 is about 2.33% per year, roughly five times the drag.
- Separately, a dealer spread of, say, 5% on the metal you buy is a one-time cost of $3,750 on a $75,000 purchase, and part of it comes back at sale time as a bid-ask gap.
The dollar figures above are illustrative and are not quoted from any company. They show the structural point: fixed annual fees and the dealer spread punish small accounts hardest. Always ask for the actual fee schedule and the spread in writing before you commit. This is an illustration, not financial advice. Consult a licensed advisor for your situation.
What are the risks, and how are these markets policed?
The account structure itself is legitimate and IRS-sanctioned. The real risks are volatility, cost, and the sales pitch attached to the metal.
On volatility, physical metals do not pay income while you hold them, so total return is entirely price change. Silver, platinum, and palladium have historically shown larger short-term swings than gold. That is a documented pattern, not a prediction. Nobody can accurately forecast where metals prices will go, 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 futures and brings enforcement against manipulation and fraud. In 2020 the CFTC required JPMorgan Chase and subsidiaries to pay $920.2 million over spoofing conduct, and 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 the cost inside the coin price. Coin upsells are where buyers lose the most. See the numismatic coin upsell, free silver promotions, and scams and red flags to avoid.
Who a precious metals IRA suits, and who it does not
This account fits some savers and not others. An honest read of fit saves you time, tax, and fees.
It tends to fit savers who already hold $50,000 or more in an IRA, 401(k), 403(b), TSP, or similar plan. It suits people at or approaching retirement who want a portion of retirement wealth held in physical metal for the next generation. The mechanics reward people who plan to keep the account in place for years, not months.
It tends not to fit savers who will need the money within a few years, who hold a small balance against the fixed fees, or who are not United States residents. Physical metals carry storage and dealer costs that short-horizon or small accounts struggle to absorb.
Our view: if you might draw the money before age 59.5 for a non-qualifying reason, weigh the early-withdrawal penalty first. The 10% federal additional tax stacks on top of your ordinary income tax and often changes the math.
When a precious metals IRA is a bad idea
A balanced page has to say when this account works against you. For several savers, a precious metals IRA is the wrong choice, and saying so plainly is part of an honest guide.
It is usually a bad idea in these situations:
- A small balance against fixed 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 position can struggle to ever come out ahead.
- You may need the money within a few years. Physical metal is volatile short-term, and selling means crossing the dealer spread again. Before age 59.5 you also owe the 10% federal additional tax unless an exception applies.
- You have no other retirement savings yet. Concentrating your only retirement money in one asset class leaves no buffer. A broad base usually comes first, with metal as a portion, not the whole.
- 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 matches patterns regulators have already 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 small or short position more than most savers expect. There is no call to action in this section on purpose.
Precious metals IRA questions, answered
What is a precious metals IRA?
A precious metals IRA is a self-directed individual retirement account that holds IRS-approved physical gold, silver, platinum, or palladium instead of stocks or funds. It follows the same federal tax rules as any IRA. A licensed self-directed custodian administers the account, and an approved depository holds the metal, because home storage is not allowed.
Which metals can I hold in a precious metals IRA?
Only four qualify under federal law: gold at .995 fineness, silver at .999, platinum at .9995, and palladium at .9995. American Gold, Silver, and Platinum Eagles qualify through a carve-out for United States coins. Rhodium and iridium are not on the statutory list and never qualify. Numismatic coins outside the coin carve-out are collectibles and are not eligible.
What are the 2026 IRA contribution limits?
For tax year 2026, the IRA annual contribution limit is $7,500, plus a $1,100 catch-up for savers age 50 and over. That limit applies across all of your traditional and Roth IRAs combined. It is why most savers fund a precious metals IRA with a rollover from an existing plan, not with a fresh cash contribution.
Can I store the metal at home?
No. Federal law requires an IRS-approved trustee to hold physical possession of the metal. Keeping IRA metal at home is treated as a taxable distribution and may carry a 10% penalty if you are under 59.5. A "home storage IRA" is not a recognized IRS structure. The Tax Court applied this rule in the 2021 McNulty case.
How is a precious metals IRA taxed?
The tax wrapper is the same as a traditional or Roth IRA. Contributions to a traditional account may be deductible, and growth is tax-deferred until you distribute. Roth contributions are made after tax, and qualified distributions come out tax-free. Physical metal pays no dividends or interest, so growth comes only from price change during your holding period.
Is a precious metals IRA the same as a gold IRA?
A gold IRA is one form of precious metals IRA. The broader account can hold silver, platinum, or palladium in addition to or instead of gold, as long as each metal meets its fineness minimum. The mechanics are identical: same custodian, same approved depository, same federal rules, same contribution limits, same required distribution ages.
What fees will I pay?
Expect a setup fee, an annual custodian fee, an annual storage fee at the depository, and a dealer spread on any metal you buy. The dealer spread is usually the largest lifetime cost and the one least clearly disclosed. Storage on silver runs higher per dollar than gold because silver is bulkier. Ask for the full schedule in writing.
Do I have to take required minimum distributions?
A traditional precious metals IRA does. Required minimum distributions start at age 73 today, rising to 75 in 2033 for people born in 1960 or later. A Roth IRA has no required minimum distribution during the owner's lifetime. See RMDs on a precious metals IRA for the mechanics.
Sources
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements. 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.
- IRS, Investments in collectibles in individually directed qualified plan accounts (Issue Snapshot). 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.
