Gold IRAs are a specific type of self-directed individual retirement account that allow you to hold gold in compliance with IRS regulations. Surprisingly, though, a gold IRA doesn’t have to just hold gold — like conventional IRAs, they can hold stocks, ETFs, bonds or mutual funds.
Given that you can also hold silver, platinum and palladium in a gold IRA, a more accurate term for this type of account would be “precious metals IRA.” But the phrase “gold IRA” is often used synonymously with this kind of retirement account.
Read on to learn more about gold IRAs, including how to open one, how to fund it and why you might want to invest some of your nest egg in precious metals using this method.
What is IRA gold?
How to set up a gold IRA
How to buy gold in an IRA
What is a Gold IRA FAQ
Summary of What Is a Gold IRA?
Types of gold IRAs
A traditional gold IRA is the most common type of gold IRA (and the kind discussed throughout this guide unless otherwise specified). It is funded with pre-tax dollars, and you pay income tax on withdrawals in retirement.
The alternative to the tax deferral a traditional or self-directed IRA affords is a Roth IRA, which is funded with money on which you have already paid taxes. The money grows tax-free and you do not pay taxes when you take distributions in retirement.
A Simplified Employee Pension — or SEP — gold IRA is a type of IRA intended for people who are self-employed or small business owners. It is also funded with pre-tax dollars, but the contribution limits are different and business owners can contribute on behalf of their employees.
How to set up a gold IRA
To set up a gold IRA, you have to work with a gold IRA company to open an account and purchase the precious metals of your choice to fund it. The company will guide you through the process, which includes coordinating the selection of an IRS-approved custodian and arranging the functions performed by the depository. Some even let you open the account online.
Custodians are financial services providers that execute investment activities on your behalf and carry out administrative tasks that ensure your account is in compliance with all IRS regulations. Depositories are facilities where the precious metals in your IRA are physically stored.
Most gold IRA companies either recommend or require that you work with a particular custodian and depository, although some give you a choice of two or more. Considerations when choosing a custodian and depository include what fees they charge for their respective services — including administration, storage fees and insurance for your gold — and how much they cost.
Check out our guide to the best gold IRA companies to learn more and compare different options.
Gold IRA rollover
A common way to fund a new gold IRA is to use funds that are already held in another retirement account, such as another IRA, 401(k), 403(b), 457(b) or Thrift Savings Plan. The gold IRA company you choose will help you initiate that by contacting your plan administrator with a request to roll over funds into your new gold IRA.
You can choose to initiate the rollover yourself, but be aware that if you are younger than 59½ years old, you have just 60 days to complete the process. Otherwise, your funds will be taxed and incur a 10% early withdrawal penalty. Many people seeking to avoid that risk instead let their gold IRA company facilitate this as an institution-to-institution transfer.
Before you initiate the transfer, it’s important to calculate how much of the value of your existing retirement savings you want to place in your new gold IRA. As a rule of thumb, most financial planners recommend having a maximum of 5% to 10% of your portfolio allocated to alternative assets, including precious metals, in order to achieve optimal diversification.
How to buy gold in an IRA
- Choose a gold IRA company: Look for a gold IRA company that is transparent, straightforward about fees and has a good reputation. A gold IRA company will help you set up your account and sell you the precious metals that fund it.
- Choose your metals: The two most widely offered options to put in a precious metals IRA are gold and silver. A number of gold IRA companies also offer platinum and/or palladium.
- Go elsewhere for investment advice: Gold IRA companies do not operate in an advisory capacity. As precious metals dealers, their role is strictly to sell, not offer investment advice. They are not fiduciaries, meaning that they are not legally required to act in your best financial interests like some retirement advisors (such as certified financial planners or financial advisors).
How to hold physical gold in an IRA
There are IRS-approved gold and other precious metals manufactured by the U.S. Mint, certain other governments’ official mints, as well as some private mints that are designated by the IRS as approved manufacturers of IRA-compliant bars and coins.
Your precious metals must be held by an IRS-approved depository. To conform with the many regulations around gold IRAs, you can’t store your gold at home or in a safe deposit box at a bank.
A main selling point of gold IRA companies is that when you have one, you also own the physical precious metals. If this is not a priority for you, there are other ways to add precious metals exposure to your portfolio besides a gold IRA.
With a traditional IRA or other retirement account, you can invest in gold via the stock market by buying shares of mining companies, or mutual funds that hold those stocks. Another alternative is a gold ETF, an exchange-traded fund that tracks the performance of gold as an asset or tracks the performance of gold mining companies.
If you feel more secure owning physical gold in a gold IRA, keep in mind that you do pay for that peace of mind: A gold IRA is more expensive than a comparable traditional retirement account. Be aware of the following costs:
- Account setup fees: Not all gold IRA companies charge this, but some do, so be sure to ask what they charge (and how much).
- Seller fees: Most gold IRA companies tack on markups, called the spread, to the price of the precious metals they sell. These markups can vary considerably depending on the type of asset — say, a bullion coin versus a proof coin — so make sure you know what kind of markup is being assessed on your purchases.
- Maintenance fees: This annual fee might be charged by the gold IRA company or by the custodian. It can be a flat fee or vary based on the size of your account.
- Storage fees: This is what you pay the depository to store your gold. Sometimes it includes the cost of insuring your gold. If not, insurance will be a separate expense you’ll have to budget for.
- Shipping fees: If you elect to take your required minimum distributions (RMDs) in kind — meaning, you will get the actual coins or bars you purchased — expect to pay both for shipping and for insuring those shipments.
- Buyback fees: Some gold IRA companies charge buyback fees. Others say they don’t, but be aware that the price they pay you when they buy back gold is likely to be lower than the price they set for gold they sell.
Gold IRA tax rules
Before you open a gold IRA, make sure you know about the regulatory hoops you have to jump through to make sure that account doesn’t violate IRS rules. Making a mistake can be very costly, so it pays to know what the IRS does and doesn’t let you do with your account.
Gold IRAs fall under IRA rules for self-directed IRAs, which allow for tax-preferred treatment of alternative assets. But the rules governing contributions are the same as for a traditional IRA: In 2026, you can contribute up to $7,500 if you are under the age of 50, and up to $8,600 if you are older.
As with other retirement accounts, if you take gold out of your IRA before turning 59½, you will have to pay income tax on the value of the gold, plus a 10% early-withdrawal penalty.
What is a Gold IRA FAQ
What is a gold IRA rollover?
A gold IRA rollover involves taking funds from another defined-contribution account such as an IRA, 401(k) or thrift savings plan. You can roll over all or part of the balance to fund a gold IRA without incurring a tax liability, provided you complete the process within 60 days. To avoid having to pay taxes and penalties, your gold IRA company can handle the transfer.
What is IRA-approved gold?
The rules that govern gold IRAs are extremely detailed. Your IRA precious metal coins, rounds, bars and ingots need to conform to regulations on size, weight, design and metal purity.
To be IRS-approved, gold must be 99.5% pure. Leading gold IRA custodian STRATA Trust Company stipulates that your gold must be certified or accredited by a government mint or at least one of the following authorities: NYMEX, COMEX, NYSE/Liffe, LME, LBMA, LPPM, TOCOM or ISO 9000.
What are gold IRA companies?
Gold IRA companies are primarily sellers of the gold bars and coins that go into a gold IRA. They also facilitate opening your gold IRA account, but they do not provide investment advice, and you should not use the marketing material they publish for guidance in this regard.
If you want to learn more about buying or selling assets, portfolio allocation and rebalancing, our guide to the best gold IRA companies can get you started.
Some investors believe that holding physical precious metals is less risky than investing in gold-industry stocks. Gold is considered a hedge against inflation, but there is an opportunity cost to holding gold, since you can’t earn income in the form of dividends. You may have to hold your assets for a long time in order for them to appreciate sufficiently.
How is a RMD handled in a Gold IRA account?
When you must begin taking distributions from your gold IRA starting at the age of 72, you can elect to take those “in-kind,” meaning that the metals will be shipped to you, in which case you can expect to pay for shipping and insurance. Or you can opt to liquidate your gold, and the gold IRA company will send you the money.
Summary of What Is a Gold IRA?
A gold IRA lets you invest in more than just conventional assets like stocks, bonds and funds — namely, it allows you to invest in precious metals, including gold, silver and platinum. A gold IRA company will help you open and fund a gold IRA, and will coordinate with the custodian and depository to administer your account and store your gold.
You can buy gold for your IRA with a rollover from another retirement account or by authorizing the gold IRA company to conduct an institution-to-institution transfer. IRA-approved gold (and other precious metals) must meet exacting IRS standards for size, weight, metal purity and design to make sure they pass muster as investment-grade assets.
Gold IRA companies are not financial advisors bound by a fiduciary duty to operate in your best financial interests. Seek out reputable outside sources or a fee-based financial planner for investment advice if you are unsure if a gold IRA is right for you.
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