Gold IRA Glossary

Dealers, custodians and the IRS each have their own vocabulary, and a Gold IRA involves all three. These are the terms you will meet, in alphabetical order.

Allocated storage

Storage in which specific metal is held for you and is not lent out or pooled as a general liability of the vault. Both segregated and commingled IRA storage are allocated.

American Gold Eagle

The official gold bullion coin of the United States, minted in 22-karat gold (.9167 fine). It is the only gold coin below .995 fineness that the tax code specifically allows in an IRA.

Assay

A test of a metal's purity and weight. Bars from accredited refiners carry an assay certificate or stamped hallmark.

Bid and ask

The bid is the price a dealer will pay you for metal. The ask is the price at which the dealer will sell. The gap between them is the spread.

Bullion

Precious metal in bars, rounds or coins valued by weight and purity, not by rarity or collector demand.

Buyback program

A dealer's commitment to repurchase metal it sold you. Terms vary: the best programs buy at or close to the spot price with no extra fee.

Catch-up contribution

An additional IRA contribution allowed for savers aged 50 or older. For 2026 it is $1,100 on top of the $7,500 base limit.

Collectible

Under tax law, items such as rare coins, art and antiques that an IRA may not hold. Outside an IRA, gains on collectibles, including physical gold, can be taxed at up to 28%.

COMEX

The main U.S. futures exchange for gold and silver, part of CME Group. Refiners approved by COMEX produce bars that meet IRA requirements.

Commingled storage

Depository storage where your metal is held together with identical metal belonging to other clients. You are entitled to the same type and quantity, not the exact pieces you deposited. It costs less than segregated storage.

Counterparty risk

The risk that the other side of a financial contract fails to pay. Physical bullion that you own outright has none.

Custodian

An IRS-approved bank or trust company that holds an IRA's assets, keeps records and files tax forms such as 5498 and 1099-R. Every Gold IRA must have one.

Dealer spread

See Premium over spot. The percentage a dealer charges above the metal's market price, and often the largest cost in a Gold IRA.

Depository

An insured, IRS-approved vault that physically stores IRA metals, for example Delaware Depository or International Depository Services.

Direct rollover

A movement of funds from an employer plan straight to an IRA custodian. No tax is withheld and there is no 60-day deadline.

Distribution

Any withdrawal from an IRA, in cash or in kind. Traditional IRA distributions are taxed as ordinary income.

Fineness

Purity expressed in parts per thousand. Gold of .995 fineness is 99.5% pure.

Form 1099-R

The tax form reporting distributions and rollovers from retirement accounts. A direct rollover is shown with distribution code G.

Form 5498

The form a custodian files each year reporting IRA contributions, rollovers received and the account's year-end fair market value.

Gold-to-silver ratio

The number of ounces of silver needed to buy one ounce of gold. Investors use it to judge the relative value of the two metals.

Home storage Gold IRA

A marketing term for arrangements where the owner keeps IRA metal at home, often through an LLC. The Tax Court rejected this in McNulty v. Commissioner (2021). It results in a taxable distribution.

In-kind distribution

Taking the physical coins or bars out of the IRA instead of selling them for cash. The fair market value on the distribution date is reported as income for a Traditional IRA.

Indirect rollover

A rollover in which funds are paid to you first. You have 60 days to deposit the full amount in an IRA. Employer plans withhold 20%, and IRA-to-IRA indirect rollovers are limited to one per 12 months.

LBMA

The London Bullion Market Association, which sets the Good Delivery standard for gold and silver bars and accredits refiners.

Numismatic coin

A coin valued for rarity, age or condition more than for its metal content. Numismatic coins are not permitted in an IRA and carry high markups.

Precious metals IRA

Another name for a Gold IRA: a self-directed IRA that holds physical gold, silver, platinum or palladium.

Premium over spot

The amount paid above the spot price for a physical product. It covers minting, distribution and the dealer's margin.

Prohibited transaction

A dealing between an IRA and a disqualified person, such as the owner or close family, that the tax code forbids. Examples: storing IRA metal at home or selling your own coins to your IRA.

Proof coin

A specially struck collector version of a bullion coin with a mirror finish. Proof American Eagles are IRA-eligible but sell at much higher premiums than the bullion version.

Required minimum distribution (RMD)

The minimum amount that must be withdrawn from a Traditional IRA each year, starting at age 73 for people born 1951 to 1959 and age 75 for those born in 1960 or later.

Rollover

Moving money from one retirement account to another without tax, most often from an employer plan to an IRA.

Roth IRA

An IRA funded with after-tax money. Qualified withdrawals are tax-free and there are no RMDs for the original owner. A Roth Gold IRA holds physical metal under the same rules.

Segregated storage

Depository storage where your exact bars and coins are kept apart from everyone else's and returned to you as the same pieces. It usually costs more than commingled storage.

Self-directed IRA (SDIRA)

An IRA whose custodian permits alternative assets such as physical metals or real estate. The tax rules are the same as for any IRA.

SEP IRA

A Simplified Employee Pension IRA for the self-employed and small businesses, with higher contribution limits. It can be self-directed and hold precious metals.

Spot price

The current market price for immediate delivery of one troy ounce of metal. Physical products always sell above it.

Transfer

A movement of IRA funds directly between two custodians of the same account type. It is not reported as a distribution and can be done any number of times.

Troy ounce

The unit used for precious metals: 31.1035 grams, about 10% heavier than a standard ounce.

Trustee-to-trustee transfer

See Transfer.

Uniform Lifetime Table

The IRS table of distribution periods used to calculate most RMDs.

Ready for the full picture? Read how a Gold IRA works or the FAQ.