IRS Rules When It Comes to Gold IRAs

Disclosure: Our content does not constitute financial advice. Speak to your financial advisor. We may earn money from companies reviewed.  Learn more

Last Updated on: 10th February 2023, 11:54 pm

Unlike a standard IRA, a Gold IRA allows you to hold physical precious metals in your account.  However, to do so IRS regulations pertaining to the type of precious metals that can be held must be adhered to.  In addition, custody of the precious metals is the responsibility of the IRA custodian, and not you as the owner of the IRA.

Allowable Precious Metals in a Gold IRA

Only specific types of gold, silver, platinum, and palladium coins and bullion are able to be held in a Gold IRA.  In the case of coins, these are usually proof coins that have been subjected to a special minting process using selected dyes.  To create these proofs, coin blanks are placed into presses and struck several times to create outlined coin images above a translucent background.

The number of proof coins issued at any one time is generally limited by the mints which supply these coins.  The prices charged for them typically take into account a variety of variables above and beyond the current prices of gold and silver, namely, the condition of the coin, mintage, rarity of that particular issue, age, and demand.  As these also serve as collectors’ items in many cases, they will typically garner a premium over their price as bullion, which varies with market conditions.

Selected Coins Eligible to be Held in a Gold IRA

Gold coins:  American Eagle coins; Australian Kangaroo/Nugget coins; Austrian Philharmonic; Canadian Maple Leaf coins; US Buffalo Gold uncirculated coins (no proofs of this type are allowed).

Silver Coins:  American Eagle coins; Australian Kookaburra coins; Austrian Philharmonic coins; Canadian Maple Leaf coins; Mexican Libertad coins.

Platinum Coins:  American Eagle coins; Australia Koala coins; Canadian Maple Leaf Coins.

Palladium Coins:  Canadian Maple Leaf coins.

Learn more about which type of precious metals you can hold in an IRA right here.

Bullion and rounds in your Gold IRA

Gold, silver, platinum and palladium bars or rounds made by authorized manufacturers are also allowed in a Gold IRA, as long as they meet certain specifications.  Acceptable fineness for gold is .995 or better; for silver .999 or better; for platinum .9995 or better, and for palladium .9995 or better.

Holding Precious Metals in Your Gold IRA

To retain the tax-favored treatment of assets in an IRA, IRS rules in regards to the custody of those assets must be followed.  Thus, as with other assets, responsibility for holding and reporting precious metals in your Gold IRA falls upon your IRA custodian.  Typically, rather than keeping possession of assets such as precious metals themselves, a custodian will have the coins or bullions held at a registered depository that specializes in securely holding such assets.

The custodian may give you a choice as to which depository your precious metals will be held at if they have agreements with more than one such facility.  In addition, fees for storing these assets will apply, so it’s generally a good idea to check with your Gold IRA custodian to see what type of fees they charge for this service.

Get Your Free Gold Kit to Learn More About Adding Gold to Your IRA

If you’ve made the decision to open a Gold IRA, the next step is to find a custodian that will allow you to hold precious metals such as gold in your IRA.  In this regard, we highly recommend requesting the free gold investment kit below.