Gold IRA: IRS Rules, Approved Coins, Fees and Scams

A gold IRA is a self-directed individual retirement account that holds physical gold — coins or bars — instead of stocks or funds. It has the same tax rules as any IRA, plus two of its own: U.S. tax law allows only certain coins and bullion, and they must be held by a trustee or custodian, not by you. Buy anything else, or keep the gold at home, and the IRS treats it as if you had withdrawn the money. Regulators warn that gold IRA sales are a common fraud aimed at retirees.

What gold can go in an IRA?

Normally an IRA can’t buy collectibles — and the law counts “any metal” and “any coin” as collectibles (26 U.S.C. 408(m)). If it does, the cost is treated as a distribution: taxable income, plus a possible 10% additional tax if you’re under 59½, per IRS Publication 590-A. The exceptions:

• U.S. gold coins of one, one-half, one-quarter or one-tenth ounce minted by the Treasury — the American Eagle coins.
• One-ounce U.S. silver coins and certain platinum coins minted by the Treasury.
• Coins issued under the laws of a U.S. state.
• Gold, silver, platinum or palladium bullion at least as pure as a U.S. futures exchange requires for delivery — if it is in the physical possession of a trustee.

Rare or “numismatic” coins don’t qualify. The CFTC and FINRA warn that “semi-numismatic” is an industry term with no special meaning, and that charging extra for such coins is likely a scam.

Can you keep gold IRA coins at home?

No. In McNulty v. Commissioner (2021), a woman set up a self-directed IRA owned through an LLC, bought American Eagle coins and kept them in her home safe, as a website had told her she could. The Tax Court ruled that having the coins gave her “unfettered control” over them, so they were taxable distributions, and it upheld penalties. The IRS had found distributions of $374,000 and $37,380, per the Journal of Accountancy. The court said: “Personal control over the IRA assets by the IRA owner is against the very nature of an IRA.”

How a gold IRA works

1. Open a self-directed IRA with a custodian that handles physical metals.
2. Fund it with a new contribution, a transfer from another IRA, or a rollover from a 401(k) or other plan.
3. Pick the metal through a dealer; the IRA, not you, buys it.
4. The metal goes to a depository chosen through the custodian, and your statement shows what you hold.

The usual IRA rules apply, per the IRS:

• 2026 contribution limit: $7,500, or $8,600 if you’re 50 or older (up from $7,000 and $8,000 in 2025). That’s across all your IRAs.
• Rollovers: only one IRA-to-IRA rollover in any 12-month period; a direct trustee-to-trustee transfer avoids that limit.
• Required minimum distributions from a traditional IRA start by April 1 of the year after you turn 73. With gold, that can mean selling metal or taking coins out — and coins you take out count as a distribution.

Gold IRA fees

A stock IRA may cost little; a gold IRA has extra layers. The CFTC and FINRA list:

• The spread or markup: dealers sell above the spot price and buy back below it. Some fraudulent dealers charged spreads over 300%, while others charge under 20%.
• Administrative fees charged by the custodian, often monthly.
• Storage and insurance at the depository.
• Taxes and penalties if you withdraw early.

Their advice: get all fees, commissions and the retail price in writing before you sign; if they won’t put fees in writing, that’s a red flag. To judge a price, compare it with the metal’s weight times the spot price (today’s gold price per gram and ounce).

Gold IRA scams: the warning signs

The CFTC and FINRA say gold and silver IRA frauds often target older workers and retirees, and some victims lost one-third to one-half of their savings to “markups, fees, and commissions.” In one case, a $300,000 rollover allegedly lost $150,000. Their warnings:

• Don’t respond to unsolicited calls or emails with an attractive offer.
• Once money is in a self-directed IRA, “you are on your own”: no fiduciary checks your investments.
• Metals dealers often aren’t registered to give investment advice and aren’t obliged to act in your best interest, the CFTC warns. Check a company’s registration on NFA BASIC before sending money.
• Some fraudulent dealers charged storage fees for metal that never existed. Review your custodian’s statement.

A real case: in October 2024 a federal court ordered Regal Assets, a California dealer that moved retirement savings into precious-metals IRAs, and two of its executives to pay about $49 million — $21.9 million in restitution and $27.3 million in penalties — for misappropriating more than $21 million from over 120 customers, per the CFTC.

To report a precious-metals scam: CFTC, 866-FON-CFTC (866-366-2382).

Gold IRA or other ways to own gold?

Physical metal isn’t the only way to own gold: there are also gold funds and mining stocks traded on exchanges, without depository storage. “Are there other ways to own precious metals?” is one of the CFTC and FINRA’s ten questions to ask before buying. Which suits you depends on your goals and costs; this page doesn’t recommend any. All five ways compared: how to invest in gold.

What this page can’t tell you

• What a given company charges. Fees and spreads aren’t standardized; ask for them in writing.
• Whether gold will rise or fall. Nobody knows.
• Your own tax situation. Rollovers and distributions have traps; check with a tax professional.

This page is information, not investment or tax advice.