What is a Precious Metals IRA?
A Precious Metals IRA is simply an Individual Retirement Account—Traditional, Roth, SEP, SIMPLE, Rollover, Spousal, or Inherited—that holds physical precious metals. Since the Taxpayer Relief Act of 1997 took effect in 1998, IRA owners have been allowed to use retirement funds to purchase certain approved bullion coins and bars. The intent was to broaden IRA choices beyond paper-based assets and give savers a way to diversify with tangible metals.
What kinds of precious metals can a Precious Metals IRA hold?
A Precious Metals IRA may include gold, silver, platinum, and palladium, provided each item meets IRS fineness standards. Gold must generally be at least .995 fine unless it is a U.S. Gold American Eagle, which is specifically permitted in 1 ounce, ½ ounce, ¼ ounce, and 1/10 ounce sizes, in either Uncirculated or Proof. Silver must be at least .999 fine, while platinum and palladium must be at least .9995 fine. Eligible products include approved coins and bars from recognized mints and refiners.
Is a Gold IRA the same as a gold certificate?
It is not. A gold certificate is a paper claim that historically represented the right to redeem for metal. A Gold IRA owns the metal itself. When you establish a Precious Metals IRA, the account acquires specific coins and bars that are stored by a qualified custodian on your IRA’s behalf.
Why would I need to transfer or roll over my IRA to buy gold?
Any IRA may legally own approved precious metals, but many large, conventional custodians focus on securities and do not offer physical bullion as an investment option. If your current provider will not hold metal, you can move your IRA by direct transfer or rollover to a self-directed IRA custodian that does. When executed correctly, these moves are non-taxable and keep your retirement account intact.
What fees are there for a Precious Metals IRA?
Most self-directed custodians charge a one-time account establishment fee, an annual account maintenance fee that covers statements and reporting, and a storage fee for the secure vaulting of your metals. Some also assess small transaction charges when you buy or sell inside the IRA. Fee schedules vary by custodian and storage choice, and Midas Gold Group maintains up-to-date comparisons to help clients choose.
Why are Precious Metals IRA fees higher than my regular IRA?
Large brokerage custodians often earn revenue from the investment products they distribute or from lending cash balances, which allows them to keep explicit account fees low. A self-directed custodian does not monetize your IRA assets in that way, so it must charge for administration, reporting, and custody. Vault storage and insurance are pass-through costs tied to safeguarding physical assets.
Are fees to set up and maintain my Gold IRA tax-deductible?
Yes. Setup charges and annual IRA maintenance fees are generally treated as deductible IRA expenses. Your tax professional can advise on how that applies to your situation.
What is the difference between an IRA transfer and an IRA rollover?
A transfer is a custodian-to-custodian movement of funds or assets that never passes through your hands. It is typically used when moving from one IRA to another IRA of the same type and can be done as often as needed. A rollover usually refers to moving money between different plan types, such as from a workplace 401(k) to an IRA. Rollovers can be direct, where funds go straight to the new custodian, or indirect, where you receive the funds and have 60 days to redeposit them. Missing the 60-day window can trigger taxes and, if applicable, penalties. Only one indirect 60-day rollover is permitted in any 12-month period.
Are precious metal account fees paid from my IRA or out of pocket?
You may choose either approach. Many clients direct the custodian to debit fees from the IRA’s cash balance, while others prefer to pay by check or card. Fees you pay personally are typically deductible IRA expenses.
Do I need to invest all the money in my Gold IRA at once?
No. After funding your self-directed IRA, you can leave some or all of the balance in cash until you are ready to place a trade. You may build positions over time or hold part of the account in other permitted assets according to your strategy.
Can I use my Roth IRA to buy gold?
Yes. A Roth IRA may hold the same IRS-approved precious metals as other IRA types, subject to the same eligibility and custody rules.
What is a Platinum IRA?
A Platinum IRA is a self-directed IRA that acquires approved platinum bullion meeting IRS fineness standards and custodian requirements.
What is a Palladium IRA?
A Palladium IRA is a self-directed IRA that holds IRS-approved palladium coins or bars meeting the required purity.
I only want to move part of my IRA to precious metals. Can I use only part of my funds?
Yes. Partial transfers and partial rollovers are common. You may also maintain multiple IRAs with different custodians if that better fits your allocation plan.
Can I own rhodium in my IRA?
No. Rhodium is not an IRS-authorized metal for IRA purposes.
My IRA custodian doesn’t offer gold. Do I have other options?
Yes. You can move your existing IRA to a self-directed custodian that permits bullion. Midas Gold Group works with leading self-directed custodians and can coordinate a tax-free transfer or rollover. Direct transfers between IRA custodians are not limited in frequency.
I have a retirement plan at work. Can I use it to buy gold?
If you have a former employer’s plan, such as a 401(k), 403(b), 457(b), or TSP, you can typically roll the balance to a self-directed IRA and then purchase metals. If you are still employed, inquire with your plan administrator about in-service distributions or partial rollovers, as availability depends on plan rules.
Can I store my IRA precious metals myself?
No. IRS rules require IRA-owned bullion to be held by a qualified trustee or custodian, such as a bank, federally insured credit union, savings and loan, or an IRS-approved nonbank trustee. Arrangements marketed as home storage, checkbook control, or LLC IRAs have not been formally recognized by the IRS for storing IRA metals at a personal residence and may expose you to tax risk. Many providers that offer such structures still advise using a bank safe deposit box, but Midas Gold Group generally recommends traditional depository storage through your custodian.
How do Required Minimum Distributions work for a Gold IRA?
When you reach the RMD age, you may satisfy distributions either by selling metal for cash inside the IRA and distributing proceeds or by taking an in-kind distribution, where specific coins or bars are shipped to you and reported at their fair market value.
Do I pay taxes when I transfer into a Gold IRA?
No. Properly executed transfers and direct rollovers from eligible retirement accounts into an IRA are not taxable events. Indirect rollovers must meet the 60-day rule to avoid taxes.
Are there any metals not allowed in a Precious Metals IRA?
Yes. Only specific forms and purities are permitted. Gold must generally be .995 fine or U.S. Gold American Eagles in allowed sizes; silver must be .999 fine; platinum and palladium must be .9995 fine. Items that do not meet these thresholds, along with collectibles and certain proof or numismatic issues not explicitly allowed, are not eligible.
Can I also have silver in my Gold IRA?
Yes. Despite the shorthand name, you may hold multiple metals in a single Precious Metals IRA, including silver alongside gold.
What if I need to liquidate my Precious Metals IRA?
You may sell positions through your custodian at any time. Sales within the IRA are not taxable if the proceeds remain in the account. If you withdraw cash or take metal out of a non-Roth IRA, normal distribution rules and taxes apply.
What happens to my Gold IRA if I die?
Your IRA passes to the beneficiaries you named on the account. Beneficiary designations can be updated at any time and govern who receives the assets and how distributions must be taken under current inheritance rules.
Can I leave my Precious Metals IRA to my church or charity?
Yes. Qualified charities, including churches, can be named as IRA beneficiaries.
Can I add to my Precious Metals IRA or make more transfers?
Yes. You may contribute annually subject to the limits for your IRA type and age, and you may initiate additional transfers or rollovers from other eligible accounts whenever appropriate.
Can I change metals within my Gold IRA?
Yes. You can trade among eligible metals, swap specific products, or rebalance your holdings without creating a taxable event, provided the assets remain inside the IRA.
Where are the storage facilities for my Precious Metals IRA?
Storage is arranged through your custodian with approved depositories. Common choices include nationally recognized vaults such as Delaware Depository Service Company, Brink’s facilities in several U.S. cities, International Depository Services locations, First State Depository, and CNT Depository. Availability may vary by custodian, and Midas Gold Group can provide current options.
Will my Precious Metals IRA be stored safely and are my metals insured?
Approved depositories use layered security, continuous monitoring, and strict handling protocols. Insurance coverage is provided through major carriers and is sized to the facility’s aggregate holdings and client requirements. When you select a reputable custodian and depository, your metals are stored under institutional controls with documented coverage.
Can I change storage facilities?
Yes. If you prefer a different vault or fee schedule, you can request a transfer of holdings between approved depositories. If your current custodian does not offer the location you want, you may also change custodians.
Can I take delivery of the metals in my IRA to satisfy an RMD?
Yes. You may elect to distribute specific coins or bars in kind. The shipped metal’s fair market value on the distribution date counts toward your RMD amount.
How do I pay my annual Precious Metals IRA fees?
You can pay by check or card, or authorize the custodian to deduct fees from any available cash in your IRA. Out-of-pocket payments are typically treated as deductible IRA expenses.
What happens if I miss my annual IRA fee payment?
Custodians may assess late fees for past-due balances. If fees remain unpaid, the custodian can liquidate a portion of your IRA’s assets to cover the outstanding amount according to the account agreement.
Do I receive statements for my Precious Metals IRA?
Yes. Custodians issue periodic statements—commonly quarterly—detailing holdings, transactions, valuations, and fees.