A Gold IRA is a self-directed individual retirement account that holds physical gold, and optionally silver, platinum and palladium, instead of stocks, bonds and mutual funds. It follows the same tax rules as any other IRA: the same contribution limits, the same Traditional or Roth choice and the same withdrawal rules. The only real difference is what sits inside the account and where it is kept.
In this guide
Key takeaways
- A Gold IRA is a normal IRA with one unusual feature: it owns physical bullion stored in an insured vault.
- Three companies are involved: a dealer, an IRS-approved custodian and a depository.
- Most accounts are funded by moving money from an existing 401(k) or IRA, which is not taxable when done directly.
- Expect about $225 to $300 a year in fees, plus a dealer markup of roughly 3% to 5% on common gold coins.
- It is a diversification tool. Most planners who use gold at all keep it to 5% to 15% of a portfolio.
The short definition
The tax code calls it an individual retirement account that invests in certain coins and bullion. The industry calls it a Gold IRA or a precious metals IRA. Banks and brokerages call the wrapper a self-directed IRA, because you direct the custodian to buy an asset that ordinary brokerage IRAs do not handle.
Three points define it:
- It is a real IRA. Contributions, rollovers, required minimum distributions and early-withdrawal penalties work exactly as they do in the IRA you may already have.
- It holds physical metal. Not shares of a gold fund and not mining stocks, but specific bars and coins that meet IRS purity standards.
- The metal is stored for you. An approved depository keeps it. You cannot hold it yourself while it is inside the account.
The three companies behind every Gold IRA
One reason people find Gold IRAs confusing is that a single account involves three separate businesses. Each has a narrow job.
| Who | What they do | Examples | How they are paid |
|---|---|---|---|
| Gold IRA company (dealer) | Sells you the metal, prepares the paperwork, coordinates the other two, buys back when you sell | Noble Gold, Augusta Precious Metals, Goldco, Birch Gold Group | The spread between what it pays for metal and what it charges you |
| Custodian | Legally holds the IRA, executes your instructions, reports to the IRS | Equity Trust, STRATA Trust, GoldStar Trust | Setup fee and an annual administration fee |
| Depository | Stores and insures the physical bars and coins | Delaware Depository, IDS of Texas, Brink's | An annual storage fee, usually billed through the custodian |
In practice you deal mostly with the dealer. A good one handles the custodian application and the transfer forms for you. The full sequence is laid out in how a Gold IRA works.
What a Gold IRA can and cannot hold
The IRS does not publish a list of approved products. It sets standards, and anything that meets them qualifies:
- Gold must be at least .995 fine. The American Gold Eagle, which is 22 karat, is allowed by a specific exception in the law.
- Silver must be at least .999 fine.
- Platinum and palladium must be at least .9995 fine.
- Bars must come from a national mint or an accredited refiner.
That covers the coins most people have heard of, such as American Eagles and Buffalos, Canadian Maple Leafs and Austrian Philharmonics, along with bars from refiners like PAMP Suisse and the Royal Canadian Mint. It excludes Krugerrands, old U.S. gold coins, anything sold as rare or collectible, and jewelry. The details are in our guide to IRA-approved gold coins and bars and the wider Gold IRA rules.
Traditional or Roth: the same choice as any IRA
A Gold IRA can be either type. A Traditional Gold IRA is funded with pre-tax money, grows tax-deferred and is taxed as ordinary income when you withdraw. A Roth Gold IRA is funded with after-tax money, and qualified withdrawals are tax-free.
The type usually follows the money. A rollover from a traditional 401(k) goes into a Traditional Gold IRA. Money from a Roth 401(k) or Roth IRA goes into a Roth Gold IRA. For 2026 you can also contribute up to $7,500 of new money across all your IRAs combined, or $8,600 if you are 50 or older.
How people fund one
Very few Gold IRAs start with a check from a savings account. Most are funded by moving money that is already in a retirement plan:
- Direct rollover from an old 401(k), 403(b), 457(b) or the Thrift Savings Plan. The plan sends the money straight to the new custodian. Nothing is withheld and nothing is taxed.
- Transfer from an existing IRA, custodian to custodian. Also not taxable, and you can do it as often as you like.
- New contributions, up to the annual limit.
You do not have to move a whole account. Rolling over a portion and leaving the rest invested as it is, is common and often sensible. See the 401(k) to Gold IRA rollover guide and the difference between a transfer and a rollover.
What it costs
Physical metal has to be bought, shipped, vaulted and insured, so a Gold IRA costs more than a brokerage IRA. There are two kinds of cost.
Fixed fees. Expect a one-time setup fee of $50 to $80, a custodian fee of $100 to $125 a year and storage of $100 to $160 a year. Most investors pay $225 to $300 a year in total.
The dealer's spread. Coins and bars sell above the market "spot" price. On common one-ounce gold bullion coins the markup is typically about 3% to 5%. On a $50,000 purchase at 4%, roughly $1,900 goes to the spread and about $48,100 buys metal. This is usually the largest cost, and it is the one that sales material mentions least.
Flat fees weigh more heavily on small accounts. An annual cost of $275 is 1.4% of a $20,000 account and about 0.3% of a $100,000 account. You can test your own numbers in the Gold IRA calculator, and the line-by-line breakdown is in Gold IRA fees explained.
Why people open one, and the trade-offs
Reasons to consider it
- Diversification: gold has often moved differently from stocks, especially in crises.
- A long record of holding purchasing power across decades.
- No counterparty: allocated metal is not a claim on a company or a government.
- Tax shelter: gains inside the IRA avoid the 28% collectibles rate that applies to gold held personally.
Real drawbacks
- No income. Gold pays no dividends or interest.
- Volatility. Gold lost about 45% between 2011 and 2015, and fell about 25% from its January 2026 record.
- Higher costs than a gold ETF or a stock index fund.
- Less convenient to sell or to take required distributions from.
A fuller discussion is in Gold IRA pros and cons.
Who a Gold IRA suits
It tends to fit investors who already have a diversified core of stocks and bonds, have at least $10,000 to $25,000 they can set aside for five years or more, and want part of their retirement money in something tangible. It fits poorly if you need income from the money, if the amount is small enough that fees take a noticeable bite, or if you would be putting most of your savings into a single asset.
Three questions help:
- Would a 25% fall in this part of my portfolio change when I can retire? If yes, the allocation is too large.
- Do I want physical ownership, or just exposure to the gold price? If exposure is enough, a gold ETF inside a regular IRA is cheaper.
- Have I compared written fee schedules from at least two companies? Our comparison of Gold IRA companies is a starting point.
Common misunderstandings
- "It is a special government program." It is not. It is an ordinary IRA holding an asset the tax code has allowed in retirement accounts for decades.
- "I can store it in my safe." You cannot. So-called home storage arrangements have lost in Tax Court. See home storage Gold IRAs.
- "A rollover is taxable." A direct rollover is not. Problems arise only when a check is made out to you and the 60-day deadline is missed.
- "Gold rises in every crisis." Often, not every time. In 2008 gold dropped sharply for several months before finishing the year higher.
If you are still deciding, read is a Gold IRA a good idea next. If you are ready to see the mechanics, go to how to open a Gold IRA.
Frequently asked questions
Is a Gold IRA the same as a precious metals IRA?
Yes. Both names describe a self-directed IRA that holds physical bullion. People say Gold IRA because gold is usually the largest holding, but the same account can also hold IRS-approved silver, platinum and palladium.
Do I actually own the gold in a Gold IRA?
Your IRA owns it, and you own the IRA. The bars and coins are held in the account's name at an insured depository. You can sell them at any time, and once you are eligible to take distributions you can have the physical metal shipped to you.
Can I keep Gold IRA metals at home?
No. The tax code requires IRA metals to be held by an approved trustee or custodian. Keeping them at home counts as a distribution, which makes the value taxable and can add a 10% penalty if you are under 59 1/2. You are free to keep gold at home if you buy it outside an IRA.
How much money do I need to open a Gold IRA?
The IRS sets no minimum, but companies do. Among well-known providers the minimum ranges from $10,000 to $50,000. Because annual fees are flat, very small accounts lose a larger share to costs.
Is a Gold IRA insured like a bank account?
Not by the FDIC or SIPC. The metal is covered by the depository's all-risk insurance policy against theft, loss and damage. That insurance does not protect you against a fall in the price of gold.