Precious Metals IRA: Complete Guide 2026

Many metals owners use a backdoor Roth or Roth conversion:

1. Roll a Traditional 401(k) or IRA into a self-directed IRA
2. Use that IRA to buy metals
3. Convert to Roth (pay taxes on the value now)
4. Metals grow tax-free in Roth forever

Tax timing: You pay income tax on the conversion amount in the year you convert. If metals have appreciated, you pay tax on the appreciated value.

Allowed:

• Gold (99.5% purity or higher)
• Silver (99.9% purity or higher)
• Platinum (99.95% purity or higher)
• Palladium (99.95% purity or higher)

Examples of eligible products:

• US Gold Eagle and American Gold Buffalo coins
• US Silver Eagle coins
• NYMEX-traded platinum and palladium bars
• Bars meeting IRS purity requirements

Not allowed: Collectible coins, numismatic coins (those valued above melt weight), jewelry, mining stocks.

Unlike a regular brokerage account, IRAs require a custodian (a company licensed to hold IRA assets). The custodian:

• Holds the metals in a segregated vault
• Processes buy/sell/rollover transactions
• Sends annual statements
• Ensures IRA rules compliance (no disqualified people, purity standards)

Cost: Setup fees ($50–$200), annual custodian fees ($100–$300), and storage/insurance fees ($100–$500/year depending on value).

1. Choose a Custodian

Pick based on fees, asset range, and storage options. Most support rollovers from 401(k), Traditional IRA, or SEP-IRA.

2. Roll Funds or Contribute

Rollover: Direct transfer from old 401(k) or IRA to your new metals IRA. No tax event.

New contribution: 2026 limits: $7,500 (under 50), $8,500 (50+). IRA contribution room is separate from 401(k).

3. Fund the IRA

Wire the funds to the custodian's account. Custodian holds the money pending your purchase instructions.

4. Buy Metals

Custodian buys IRA-eligible metals through a dealer or directly. You cannot take physical possession (until retirement withdrawal).

5. Storage & Annual Reports

Custodian arranges segregated vault storage (your metals separate). You get annual statements showing holdings, cost basis, and valuation.

6. Withdrawal (Age 59½+ or Roth 5-year rule)

Withdraw cash or take metals in kind (for Roth, typically in kind to avoid tax on appreciation).

Early Withdrawal (Before Age 59½)

Traditional IRA: 10% penalty + income tax on withdrawal.

Roth IRA: Can withdraw contributions tax-free anytime. Earnings incur 10% penalty + tax if before age 59½ (exception: first-time home buyer up to $10K).

Required Minimum Distributions (RMDs)

Traditional IRA: Must start withdrawals at age 73 (increased from 72). Amount calculated based on life expectancy.

Roth IRA: No RMDs during your lifetime. Can leave metals to heirs entirely tax-free (with step-up in basis).

Prohibited Transactions

Do not:

• Take physical possession of metals (until qualified withdrawal)
• Use IRA metals as collateral for loans
• Buy from or sell to disqualified people (yourself, spouse, parents, children)

Violating these rules disqualifies the entire IRA, triggering tax on all assets.

• ☐ Determine Traditional vs Roth (or consider Roth conversion)
• ☐ Choose a custodian (Equity Trust, Fidelity, BitIRA, or IRA Financial)
• ☐ Verify rollover eligibility from old 401(k) or IRA
• ☐ Confirm IRA-eligible metals (US Eagles, 99.5%+ gold, 99.9%+ silver)
• ☐ Review storage and annual fees
• ☐ Consult a CPA on tax timing and implications
• ☐ Keep annual statements for records

Affiliate disclosure: MetalBrief earns referral commissions if you open an IRA through the custodian links above. We recommend based on reputation, fees, and service—not commission size. This supports the free dashboard and newsletter.