What is a gold IRA? Physical metals, rules, and custody

A retirement account that can hold physical metals

A “gold IRA” is a common description for a self-directed IRA that holds permitted precious metals. It is not a new tax category. The traditional or Roth character of the account continues to matter. A personally purchased coin does not become an IRA asset simply because you intend to keep it for retirement.

Traditional or Roth gold IRA: the account still matters

The metal does not determine the tax treatment. A traditional IRA and a Roth IRA have different contribution and distribution rules. Moving untaxed retirement money to a Roth IRA generally creates taxable income; it is not made tax-free by buying gold afterward. A transfer between like account types is a different decision from a Roth conversion. Confirm which transaction you are requesting before signing.

How to open and fund a precious metals IRA

Understand three separate roles

The dealer provides the metals and the product quote. Equity Trust can serve as the IRA custodian, administering the account and processing your instructions. Delaware Depository can provide the physical storage selected through the custody arrangement. Ask for each agreement so you know which organization handles which part of the transaction.

Choose eligible products, then confirm the details

Certain coins and qualifying bullion are permitted under the IRA exceptions to the collectibles rules. A familiar name, a high purity number, or attractive packaging is not enough to evaluate every version of a product. Have the custodian confirm the exact coin or bar before authorizing the purchase.

• Identify the mint or refiner, weight, fineness, and product version.
• Separate bullion pricing from collector premiums.
• Confirm the storage arrangement before the metal is shipped.

Use the funding route that matches your account

An existing IRA may use a trustee-to-trustee transfer. An eligible employer-plan distribution may use a direct rollover. A new annual contribution is a different transaction with its own eligibility and limits. Review the account types and tax treatment with a qualified professional before requesting funds.

Think beyond the purchase

Your account needs a plan for administration charges, storage, future sales, and eventual distributions. Gold and silver do not pay interest or dividends. Consider how you will meet cash needs without being forced to sell metal at an unfavorable time.

Gold IRA pros and cons to discuss before funding

Physical bullion ownership may be the feature you want, but custody, product premiums, selling costs and concentration all affect the decision. Consider the role of this holding alongside the investments and cash you already have. Neither the account label nor the metal guarantees protection against inflation or losses.

• What benefit would physical metal provide that my current investments do not?
• How would I pay recurring charges and meet future cash needs?
• Could I tolerate selling below the purchase cost?

Understand the $5,000 company purchase minimum

Review the IRA storage checklist