A gold IRA is an individual retirement account that holds physical gold in a custodian's vault, never at your home, instead of stocks or funds. The custodian is the bank or trust company that legally holds the account for you. The vault it uses is called a depository.
You can add up to $7,500 a year in 2026, or $8,600 if you are 50 or older (IRS Notice 2025-67). Company minimums are higher than that, so gold IRAs are usually funded by moving money from a 401(k) or another IRA. Those moves have no dollar cap. So what does it cost, and what can go wrong?
This guide starts with the tax-code rule that lets gold into an IRA (26 U.S.C. 408(m)(3)). It then covers the 6 steps, which gold qualifies, the costs, the 7 downsides, the 10 IRS rules and 8 checks on a seller. On $100,000 over 10 years, costs run from about $8,580 with plain bullion coins to $45,983 when the dealer takes a large cut.
The table below sums up a gold IRA in 10 facts as of September 29, 2026.
| Item | 2026 value and source |
|---|---|
| What it holds | IRA-eligible gold under 26 U.S.C. 408(m)(3): American Gold Eagles, or bullion at least .995 fine (99.5% pure) |
| Who holds it | A custodian (a bank or trust company); the metal sits in a depository |
| Yearly contribution limit | $7,500; $8,600 at 50 or older (IRS Notice 2025-67) |
| Moving existing savings | Transfers and direct rollovers: no dollar limit, no tax when done custodian to custodian |
| Typical account fees | $215 to $656 a year on a $50,000 account at four published metals schedules (2026) |
| Typical dealer cost on 1 oz bullion coins | About 5% to 7% round trip; 5.39% on a Gold Eagle at one large dealer (SD Bullion, September 29, 2026) |
| Required minimum distributions (RMDs) | From age 73; 75 if born in 1960 or later |
| Home storage | Not allowed (McNulty v. Commissioner, 157 T.C. No. 10, a 2021 Tax Court case) |
| Insured by FDIC (bank deposit insurance) or SIPC (broker failure protection)? | No; only the depository's insurance, which pays metal value |
| IRS list of approved gold? | None exists (IRS Retirement Plan Investments FAQs) |
The table below explains 7 words that appear on every gold quote.
| Word | What it means |
|---|---|
| Spot price | Today's market price for one troy ounce (oz, 31.1 grams) of pure metal |
| Melt value | The metal in a coin times the spot price |
| Premium (sellers' contracts say "spread" or "markup") | What you pay above melt value |
| Bid (buyback price) | What the dealer will pay you for the same coin |
| Buyback gap | How far the dealer's bid sits below the metal's value |
| Round trip | Premium plus buyback gap: the total cost of buying and later selling |
| LBMA PM price | The London benchmark gold price, set each afternoon |
What Is a Gold IRA?#
A gold IRA is an IRA whose custodian buys gold that the tax code allows and stores it in a depository (26 U.S.C. 408(m)(3)). The tax code normally treats coins and metal as collectibles, like art, gems and stamps. If an IRA buys a collectible, the cost counts as paid out to you, and you owe tax on it that year (408(m)(1)).
Two exceptions open the door: coins the law names, and pure bullion (bars or coins valued only for their metal). The same exceptions cover silver, platinum and palladium, so gold is simply the best-known kind of precious metals IRA.
Three products are often sold as a "gold IRA", but none of them is one. A gold ETF (a fund that owns gold and trades like a stock) is legal in a normal IRA. But the IRA then owns fund shares, not metal (IRS private letter ruling 200732026). A gold mining fund owns company stock, and coins kept at home break the custody rule.
Is a gold IRA its own type of account?#
No. A gold IRA is a normal IRA whose custodian lets it own physical metal, so the same limits and tax rules apply. People call it a self-directed IRA: you choose assets that the big brokers do not offer. The 4 types of gold IRAs are listed below.
- Traditional IRA: money goes in before tax (or you deduct it), and withdrawals are taxed as income.
- Roth IRA: taxed money goes in, and withdrawals after age 59 1/2 and 5 years are tax-free.
- SEP IRA: employer contributions for the self-employed and small firms.
- SIMPLE IRA: a small-employer plan with its own limits.
Your $7,500 limit for 2026 is shared across all your traditional and Roth IRAs, so a gold IRA adds no extra room (IRS Publication 590-A). Few 401(k) plans allow coins, because the same collectibles rule covers 401(k) accounts where you pick the investments (408(m)). Which account fits you is covered in types of gold IRAs.
Is "IRS-approved gold" a real thing?#
No. The IRS keeps no list of approved coins, bars, dealers or vaults, so "IRS-approved gold" is a sales phrase. The IRS Retirement Plan Investments FAQs (updated April 8, 2026) say: "there is no list of approved investments for retirement plans." The correct phrase is "IRA-eligible under 26 U.S.C. 408(m)(3)."
The IRS approves one thing: nonbank trustees, companies allowed to hold IRAs although they are not banks (Treas. Reg. 1.408-2(e)). Its nonbank trustee list had 73 entities on April 1, 2026, mostly brokerages such as Schwab and Merrill. Only one is a metals business: Lone Star Tangible Assets, LP, approved on November 30, 2023.
Large metals custodians are not on that list. Equity Trust and STRATA are trust companies licensed by South Dakota and Texas. GoldStar is a division of Centennial Bank, and all three count as "banks" under 26 U.S.C. 408(n).
Equity Trust's gold page says it was "IRS approved as a custodian in 1983." Yet an SEC judge found the company "came into being in 2003" (Initial Decision No. 1030). How to check a license is in "IRS-approved" gold IRA custodians.
How long have gold IRAs been legal?#
American Gold Eagles have been allowed in IRAs since 1987 and pure gold bullion since 1998. Congress had banned collectibles, including gold coins, from IRAs in 1981. Each law took effect the year after it passed, as the table below shows.
| Year | Law or ruling | What changed for gold |
|---|---|---|
| 1974 | ERISA, the retirement law that created IRAs (September 2, 1974) | IRAs created |
| 1974 | Pub. L. 93-373 | Americans may own gold bullion again from December 31, 1974 |
| 1981 | Economic Recovery Tax Act of 1981 | Collectibles, including gold coins, banned in IRAs for property bought after December 31, 1981 |
| 1986 | Tax Reform Act of 1986 | American Gold and Silver Eagles allowed for purchases after December 31, 1986 |
| 1997 | Taxpayer Relief Act of 1997 | Gold, silver, platinum and palladium bullion allowed for tax years beginning after December 31, 1997 |
| 2021 | McNulty v. Commissioner, 157 T.C. No. 10 | Tax Court confirms the trustee, not the owner, must hold IRA metal |
In 1988 the law also allowed coins issued by a U.S. state. Each law is quoted in the history of gold in IRAs.
How Does a Gold IRA Work? 6 Steps From Opening to Cash-Out#
A gold IRA works in 6 steps: open it, fund it, pick the gold, let the custodian pay, hold the metal, then sell or withdraw. Five parties take part, as the table below shows.
| Party | What it does | What it does not do | Who pays it |
|---|---|---|---|
| You | Sign the forms and tell the custodian what to buy or sell | Touch or store the IRA's metal | You pay all fees, from the IRA or from outside |
| Custodian | Holds the IRA, pays the dealer, reports to the IRS on Form 5498 (yearly value) and Form 1099-R (withdrawals) | Check the dealer's price or give advice | Yearly and per-trade fees |
| Dealer | Sells the metal and may buy it back | Act as your fiduciary (someone legally bound to put your interests first) | Its premium, built into the price |
| Depository | Stores and insures the metal | Insure the premium you paid | Storage fees, usually billed by the custodian |
| IRS | Sets the tax rules | Approve any coin, dealer or vault | Collects tax when you withdraw |
American Hartford Gold's September 2026 agreement says: "no fiduciary relationship exists." Brokerages move IRAs to each other through an automated system (ACATS, FINRA Rule 11870) within about 4 business days. Metals custodians usually receive the cash by check or wire instead. So plan on about 2 to 6 weeks from a broker such as Fidelity to metal in the vault (SafeOunce estimate).
The first 4 steps open the account. Each one, with its cost, is on how to open a gold IRA.
1. Open a self-directed IRA with a metals custodian#
You open the account with a metals custodian by signing its application and paying a setup fee of about $50 (2026 schedules). Equity Trust and GoldStar charge $50, and STRATA waives its $50 fee when you apply online (fee schedules read September 29, 2026).
Federal rules give you at least 7 days to cancel a new IRA and get every dollar back (Treas. Reg. 1.408-6). You use this right with the custodian. It does not cancel your coin order with the dealer.
What goes wrong: people sign a dealer's paperwork first and never compare custodians. A self-directed IRA for gold works like any IRA, with a custodian that allows metal.
2. Move money in by transfer, rollover or contribution#
Most gold IRAs are funded by an IRA transfer or a direct 401(k) rollover, and neither is taxed when done custodian to custodian. A transfer moves money between two IRA custodians. A direct rollover moves it from a 401(k) or similar plan straight to the new custodian. An indirect rollover pays you first, and you have 60 days to deposit it.
A transfer has no 60-day clock, no once-a-year limit and no tax withholding (IRS Publication 590-A). From a 401(k), ask for a direct rollover made out to the new custodian "for the benefit of" you. New contributions must be cash.
What goes wrong: a check made out to you. From a 401(k), it arrives 20% short, because the plan must hold back 20% for tax. You then have 60 days to deposit the full amount, including the missing 20%, or the shortfall is taxed. So ask for an IRA to gold IRA transfer, not a check.
3. Pick a dealer and IRA-eligible gold#
You choose the dealer and the exact coins or bars, and the dealer, not the custodian or the IRS, sets the price you pay. The CFTC, the federal futures regulator, says bullion typically sells for 5% to 10% over spot (advisory 8215-20, August 4, 2020). Numismatic (collector) coins sell for 40% to 200% over spot.
Why does the price matter so much? American Hartford Gold's September 2026 agreement says its reps are "compensated on commission" and are "not licensed." Goldline's account agreement (Ver. 20220601) says commissions are "usually greatest on products with a higher spread."
What goes wrong: people get one quote and sign. A bullion dealer, such as SD Bullion, posts its prices online; a gold IRA company sells mainly to IRA buyers. Get written prices, because the gap between a bullion dealer vs gold IRA company shows only on paper.
4. The custodian pays and a depository takes delivery#
The custodian pays the dealer from your IRA, and the dealer ships the metal straight to a depository in the custodian's name. You sign a form telling the custodian to buy, and it wires the IRA's cash to the dealer. The metal never passes through your hands; bullion counts only while a trustee holds it (408(m)(3)(B)).
What goes wrong: people assume the custodian checked the deal, but it will not tell you if the price is too high. An SEC judge dismissed charges against the custodian Equity Trust on June 27, 2016 (Initial Decision No. 1030). A stricter standard, the judge noted, "would require custodians to charge much higher fees than did Equity Trust."
Delivery can also stall: Washington's securities regulator found that Rosland Capital delivered IRA metal 33 to 168 days after payment (consent order, August 4, 2022). The CFTC's benchmark for actual delivery is 28 days (advisory 8215-20). So check that your custodian statement lists the metal within about 28 days. Custodians and their fees are compared in gold IRA custodians.
5. Hold the metal and pay yearly fees#
While you hold the gold, you pay yearly fees, and your statement values the metal near spot, not at what you paid. On a $50,000 account, yearly fees run from $215 at GoldStar with commingled (shared) storage to $656 at Madison Trust (2026 schedules).
So the first statement shows less than you paid, as the worked example further down explains.
What goes wrong: unpaid fees. Equity Trust's precious metals risk and fee disclosure says it may "liquidate your precious metals assets ... and force distribute any remaining assets." That can mean a taxable withdrawal you never asked for. See gold IRA custodian fees for per-trade and wire charges.
6. Sell, take coins out or take required distributions#
You can sell the metal inside the IRA with no tax, or take the coins out as a taxable withdrawal at their value that day. The tax code calls a withdrawal a distribution. A sale inside the IRA keeps the cash in the account, so nothing is taxed until you withdraw it.
An in-kind distribution means the coins themselves leave the vault. Your custodian reports it on Form 1099-R at fair market value (the market price that day). Equity Trust (Rev. 081726) charges $30 each time it sells metal for you and $125 per in-kind distribution.
Required minimum distributions (RMDs), the yearly minimum the IRS makes you take out, start at 73, or 75 if born in 1960 or later. What goes wrong: selling at the dealer's bid in a hurry to meet that deadline. Plan how gold IRA distributions will work before you turn 73.
Which Gold Can a Gold IRA Hold? The 2 Legal Routes#
Gold qualifies by 2 routes: it is an American Gold Eagle, which the law names, or bullion at least 99.5% pure held by the custodian. Route A, in 408(m)(3)(A), names the Gold Eagle in its 1, 1/2, 1/4 and 1/10 oz sizes. Karat measures purity: 24 karat is pure gold. The Eagle is 22 karat (91.67% gold) and qualifies because it is named.
Route B, in 408(m)(3)(B), admits bullion at the purity the futures market demands. For gold that is .995, the minimum for the 100 oz contract on COMEX, the main U.S. gold futures exchange. So why is a 22-karat Krugerrand refused? It is not named, so it must pass the .995 test, and it fails.
The full list for all four metals is on which gold the tax code allows.
Custodians add their own rules on top of the law. Proof coins have a special collector finish. GoldStar accepts them only ungraded, in original mint packaging with the certificate, and STRATA requires original packaging and a certificate.
Equity Trust and GoldStar refuse graded or "slabbed" coins, sealed in a plastic holder with a grade. The table below checks 11 gold products as of September 29, 2026.
| Product | Purity | Route | Eligible? | Custodian notes |
|---|---|---|---|---|
| American Gold Eagle (IRA-eligible gold coins) | .9167 (22 karat) | A (named) | Yes | Bullion yes; proofs only in original packaging with certificate (GoldStar: ungraded only) |
| American Gold Buffalo | .9999 | B | Yes | Bullion only; proof refused by GoldStar and Equity Trust |
| Canadian Gold Maple Leaf | .9999 | B | Yes | |
| Austrian Philharmonic | .9999 | B | Yes | |
| Australian Kangaroo | .9999 | B | Yes | |
| British Britannia, 2013 and later | .9999 | B | Yes | 2012 and earlier (.9167): no |
| Gold bars from an accredited refiner, one approved by the major exchanges (IRA-eligible gold bars) | .995 or higher | B | Yes | For example PAMP |
| South African Krugerrand | .9167 | None | No | Not named, below .995 |
| British Sovereign | .9167 | None | No | |
| Pre-1933 US gold coins | .900 | None | No | |
| Graded or slabbed coins | Varies | Varies | No at Equity Trust and GoldStar | Refused by Equity Trust and GoldStar (September 29, 2026) |
Five questions test any coin a seller quotes, and they are listed below.
- Is it a coin the law names?
- Does it meet the fineness test?
- Is it bullion, not a collector piece?
- Does your custodian accept it?
- Will the trustee hold it from day one?
Can you keep gold IRA metal at home?#
No. Gold that you or your own LLC keeps at home counts as withdrawn, as the Tax Court confirmed in McNulty v. Commissioner (2021). An LLC is a small company, here set up to hold the IRA's investments. In 2015, Mrs. McNulty's IRA LLC bought 320 one-ounce Gold Eagles for $374,000, and she kept them at home.
The court taxed the coins' cost as a distribution (McNulty v. Commissioner, 157 T.C. No. 10, filed November 18, 2021; docket 1377-19).
Say you are married, file jointly and have $80,000 of other taxable income in 2026. The table shows the extra federal tax if you take coins home.
| Coins taken home | Extra federal tax | With the 10% additional tax (under 59 1/2, 26 U.S.C. 72(t)) |
|---|---|---|
| $50,000 | $8,920 | $13,920 |
| $100,000 | $19,920 | $29,920 |
| $250,000 | $55,292 | $80,292 |
Sellers still pitch home storage plans with an LLC. The full ruling and the red flags are in home storage gold IRA.
Where is gold IRA metal stored, and is it insured?#
Gold IRA metal sits in a private vault, such as the Delaware Depository or Brink's, insured by the vault's policy, not the FDIC or SIPC. Equity Trust's vault list includes Brink's, Delaware Depository, IDS and the Texas Bullion Depository (September 29, 2026).
Commingled storage keeps your coins with the same kind of coins owned by others, and your account still owns a set number of them. Segregated storage keeps your exact bars and coins apart. It costs $50 a year more at Equity Trust, $60 at STRATA and $100 at GoldStar (2026 schedules).
Vaults differ in fees, owners and insurance, and the main gold IRA depositories are compared side by side. The 4 points below sum up what the insurance covers.
- FDIC: covers only uninvested cash in the account, up to $250,000, never the metal.
- SIPC: covers securities at a failed broker, up to $500,000, never physical metal.
- Vault policy: the Delaware Depository carries $1 billion of all-risk cover plus $100 million of contingent cover (its FAQ, September 29, 2026).
- Limits: the policy pays what the metal is worth, not the premium you paid. A declared value (a higher value you registered in advance) changes that. It excludes war, terrorism, cyber attacks and government confiscation.
Vaults can fail. First State Depository held 2,102 accounts, 90% of them IRAs, when an estimated $56.8 million to $110.4 million of metal went missing. Its owner, Robert Leroy Higgins, was sentenced on June 17, 2025 to 65 years.
The exclusions matter more than the headline limit, and they are listed in how gold IRA storage is insured.
How Much Does a Gold IRA Cost?#
A gold IRA costs about $215 to $656 a year in account fees on a $50,000 account (four published 2026 schedules). On top of that comes the dealer's one-time premium, which is usually the bigger cost. The 5 cost layers of a gold IRA are listed below.
- Dealer premium: paid once when you buy.
- Buyback gap: paid when you sell. With the premium, the round trip is about 5% to 7% on 1 oz bullion coins (5.39% on a Gold Eagle, SD Bullion, September 29, 2026).
- Yearly fees: the custodian's annual fee plus storage.
- Setup fee: about $50 at the schedules below.
- Per-trade and exit fees: charges to buy, sell, ship coins or close the account, such as $250 to close at Equity Trust.
Fees look small next to the premium, but they repeat every year. Each layer is compared in gold IRA fees. The table below shows four custodian schedules.
| Custodian (schedule) | Setup | Annual fee | Storage: commingled / segregated | Close account |
|---|---|---|---|---|
| GoldStar Trust (GTC Rev. 01/2026) | $50 | $90 | $125 / $225 minimum (a percentage applies above $125,000) | $150 |
| Equity Trust, metals only (FS-0004-05 Rev. 081726) | $50 | $125 | $110 / $160 | $250 |
| STRATA Trust (fee page, August 31, 2026) | $50 (waived online) | $150 | $115 / $175 (plus $75 per trade) | $250 |
| Madison Trust (effective January 1, 2026) | See schedule | $556 ($139 a quarter) | $100 minimum up to $100,000, then $1 per $1,000 | $225 |
Fees as published on each schedule, read September 29, 2026. Always ask which schedule applies to you.
Fixed fees hit small accounts hardest. The table below turns three 2026 schedules into a yearly cost as a share of your balance.
| Account balance | GoldStar commingled ($90 + $125 = $215 a year) | Equity Trust segregated ($125 + $160 = $285 a year) | Madison ($556 + $100 = $656 a year; $806 at $250,000) |
|---|---|---|---|
| $5,000 | 4.30% | 5.70% | 13.12% |
| $10,000 | 2.15% | 2.85% | 6.56% |
| $25,000 | 0.86% | 1.14% | 2.62% |
| $50,000 | 0.43% | 0.57% | 1.31% |
| $100,000 | 0.22% | 0.29% | 0.66% |
| $250,000 | 0.09% | 0.11% | 0.32% |
Even so, the premium usually costs more than all these fees, as explained in gold IRA markups and spreads.
What does a gold IRA cost over 10 years?#
A $100,000 gold IRA held 10 years costs about $8,580 with plain bullion coins, but $30,171 to $45,983 at a 23.4% to 39.99% spread. The table compares three cases on $50,000 and $100,000.
| Account | Case | 1 year | 5 years | 10 years (share of the amount invested) | Rise gold needs to break even (10 years) |
|---|---|---|---|---|---|
| $50,000 | 1: bullion coins | $3,315 (6.6%) | $4,455 | $5,880 (11.8%) | 12.4% |
| $50,000 | 2: 23.4% spread | $14,110 | $15,250 | $16,675 (33.4%) | 45.7% |
| $50,000 | 3: 39.99% spread | $22,016 | $23,156 | $24,581 (49.2%) | 86.0% |
| $100,000 | 1: bullion coins | $6,015 (6.0%) | $7,155 | $8,580 (8.6%) | 9.1% |
| $100,000 | 2: 23.4% spread | $27,606 | $28,746 | $30,171 (30.2%) | 41.3% |
| $100,000 | 3: 39.99% spread | $43,418 | $44,558 | $45,983 (46.0%) | 80.4% |
The table rests on the 4 assumptions listed below.
- Fees: Equity Trust's metals-only schedule with segregated storage ($50 setup, $285 a year, $280 to exit), paid from outside the IRA. Gold stays flat.
- Case 1: a 5.4% round trip on bullion coins.
- Case 2: a 23.4% spread, Lear Capital's own 2022 average from its Chapter 11 bankruptcy plan (June 5, 2023). It is one company's figure, not an industry average. With the buyback gap, it costs 27.0%.
- Case 3: 39.99%, the "up to" cap for "exclusive" coins in American Hartford Gold's September 2026 agreement. With the buyback gap, it costs 42.8%. It is a cap, not what every buyer pays.
To test your own quote, change the numbers in the gold IRA fee calculator.
A "no fees" offer is worth less than it sounds. Ten years of Equity Trust segregated fees come to $2,900, or 2.9% of $100,000. A required coin priced more than about 3 points above plain bullion wipes that out.
How much money do you need to start a gold IRA?#
The IRS sets no minimum. Gold IRA companies ask for $5,000 to $50,000 to start (published minimums, September 2026), and yearly fees make balances under about $10,000 expensive. The table lists published minimums as read on September 29, 2026.
| Company or provider | Published minimum | Source |
|---|---|---|
| Birch Gold Group | $5,000 | Company FAQ |
| GoldenCrest Metals | $10,000 | Company site |
| Noble Gold | $20,000 | Company gold IRA page |
| Goldco | $25,000 ("we generally require a minimum of $25,000") | Company FAQ |
| Augusta Precious Metals | $50,000 (company-stated) | Augusta's FAQ, last updated September 23, 2026 |
| Fidelity (bullion inside its own IRA) | $1,000 purchase | Fidelity fee schedule |
| American Hartford Gold, Lear Capital, Preserve Gold, Priority Gold, Patriot Gold | Not published | Company sites |
Contributions alone rarely reach these minimums. Goldco's $25,000 minimum equals 2.9 years of the maximum $8,600 contribution at 50 or older, or 3.3 years at $7,500. That is why gold IRAs are usually funded by transfers and rollovers. Every company is listed in how much money you need to start a gold IRA.
Why does the first statement show less than you paid?#
Your first statement shows less than you paid because the custodian values the metal near melt value, while your price included the premium. Equity Trust, for example, values holdings at "the previous day's metal type value," which leaves out the dealer's premium.
Proof coins show a bigger gap. A $50,000 proof purchase at a 30% premium shows about $38,500. That gap is not a custodian error; it is the premium you paid. Each line of a gold IRA statement is explained on its own page.
What Are the Risks of a Gold IRA? 7 Downsides in Numbers#
A gold IRA has 7 main downsides, and the dealer's spread usually costs the most. Each downside below comes with its number and date.
- Price swings. Gold fell in 19 of the 55 years from 1971 to 2025. Its volatility, a measure of how bumpy the ride is, was 27.1% against 16.9% for the S&P 500 (500 large U.S. companies). A drawdown is a fall from a high; the first table below shows the 2026 one.
- The dealer's spread. A spread is a loss on day one: gold must rise just to get you back to even. Counting the buyback gap, gold must rise 10.4% at a 5% spread and 74.8% at 39.99% (second table below). Test your own quote in the gold IRA break-even calculator.
- Fixed fees on small balances. A $285 yearly fee is 2.85% of a $10,000 account but 0.29% of $100,000 (Equity Trust schedule, 2026).
- No income. Gold pays no interest or dividends, so the whole return comes from the price, minus fees.
- Long recoveries. A buyer at the January 21, 1980 peak who paid a 5% premium broke even only on January 14, 2008, 28 years later. After inflation, gold took 45.6 years to regain its 1980 high.
- Sales pressure and fraud. The CFTC says its cases alleged over $500 million of overpriced metals sold to investors over a decade (release 8881-24, March 20, 2024). In one case, Red Rock Secured, at least 950 people paid over $69 million for coins worth about $30 million (CFTC consent order, April 23, 2024).
- Slow access and paperwork. You cannot sell in seconds on a phone app. Sales and withdrawals go through the custodian, with fees such as $30 per sale and $125 per in-kind distribution at Equity Trust (Rev. 081726).
The first table shows the 2026 drawdown for a buyer at the peak, using LBMA PM prices.
| Buyer at the January 29, 2026 record ($5,405.00) | Down by September 28, 2026 ($4,144.55) |
|---|---|
| Gold price alone | 23.3% |
| Paid a 5% premium, sold 1% below spot | 27.7% |
| Paid a 30% premium | 41.6% |
The second table shows the rise gold needs to break even after each spread, counting the buyback gap but no fees.
| Dealer spread | Rise gold needs to break even |
|---|---|
| 5% | 10.4% |
| 19.99% | 31.1% |
| 23.4% | 37.0% |
| 39.99% | 74.8% |
The 10-year cost table above shows other figures because it adds 10 years of fees and uses a measured 5.4% round trip for bullion. Since 1975, gold held 10 years lost money in about 1 of 3 start years with plain bullion. At a 23.4% spread, it lost in about half.
| Cost case, 10-year holds (41 start years, 1975 to 2015) | Start years that lost money |
|---|---|
| No costs | 10 (24%) |
| 5.4% bullion round trip | 13 (32%) |
| 23.4% spread plus buyback gap | 21 (51%) |
| 39.99% spread | 25 (61%) |
SafeOunce computation on LBMA PM year-end prices, $100,000 per start year.
A high spread turns a normal drawdown into a loss that can take years to recover. Whether that outweighs the upsides is weighed, with a verdict by situation, in the real downsides of a gold IRA.
What if you had invested $10,000 in gold 20 years ago?#
$10,000 of gold bought on September 28, 2006 was worth $68,732 at spot 20 years later, but about $49,929 in a low-cost gold IRA. The table shows the same $10,000 under 4 cost cases. It uses LBMA PM prices: $603.00 on September 28, 2006 and $4,144.55 on September 28, 2026.
| Case | Value on September 28, 2026 | Yearly return |
|---|---|---|
| Gold at spot, no costs | $68,732 | 10.1% |
| Low-cost gold IRA (5% premium) | $49,929 | 8.4% |
| Gold IRA at a 30% premium | $37,529 | 6.8% |
| Proof coins (30% premium, sold 10% below spot) | $32,794 | 6.1% |
The low-cost case assumes a $50 setup fee and a 5% premium. It also assumes $250 a year in fees, paid by selling metal at 1% below spot, and a final sale 1% below spot.
Results depend heavily on the start date, as the table below shows (S&P 500 with dividends reinvested). Every year is in gold IRA returns since 1971.
| Period | Gold, a year | S&P 500, a year |
|---|---|---|
| 1971 to 2025 | 9.0% (5.0% after inflation) | 11.1% |
| 1981 to 2025 | 4.6% | 11.7% |
| 2000 to 2025 | 11.0% | 8.0% |
| 2003 to 2022 | 8.6% | 9.7% |
Gold beat the S&P 500 in only 13 of 45 ten-year periods and 8 of 35 twenty-year periods (1972 to 2025). So a dealer table that starts in 2000, one of gold's best start years, says more about the start date than about gold. All start dates are compared in gold vs the S&P 500 since 1971.
Equity Trust's gold page says "Gold spot prices outperformed the S&P 500 and DJIA [the Dow Jones Industrial Average] for the 20-year period ending in 2022." Counting stock dividends, 2003 to 2022 gave gold 8.6% a year and the S&P 500 9.7%. That is a SafeOunce computation on LBMA prices and the return data of NYU professor Aswath Damodaran.
What IRS Rules Apply to a Gold IRA? 10 Rules for 2026#
A gold IRA follows the same IRS rules as any IRA, plus 2 rules for metal. It may buy only eligible gold, and the custodian, not you, must hold it.
The table lists the 10 rules that matter most for 2026, and each rule is explained in gold IRA rules. A prohibited transaction (rule 8) is a deal between the IRA and you or a close relative, such as using the coins.
| # | Rule | Legal source | In plain English |
|---|---|---|---|
| 1 | Buy eligible metal only | 26 U.S.C. 408(m)(3) and 408(m)(1) | Anything else counts as a withdrawal of its cost |
| 2 | The trustee holds the metal | 408(m)(3)(B); McNulty v. Commissioner (2021) | No home storage and no personal safe |
| 3 | Contributions are cash only | 408(a)(1); IRS Notice 2025-67 | Up to $7,500 in 2026, $8,600 at 50 or older; you need taxable compensation, such as wages or self-employment income; money above the limit (an excess contribution) must come back out; 2027 limits not announced as of September 29, 2026 |
| 4 | Transfers are unlimited | IRS Publication 590-A | Custodian-to-custodian moves are not rollovers |
| 5 | 60-day rollover rule | 408(d)(3); Estate of Caan, 161 T.C. No. 6 (2023) | Deposit by day 60, and put back the same property you took out |
| 6 | One-rollover-per-year rule | Bobrow v. Commissioner, T.C. Memo. 2014-21; IRS Announcement 2014-15 | One IRA-to-IRA 60-day rollover per 12 months across all your IRAs, not one per plan; transfers, plan rollovers and Roth conversions don't count |
| 7 | 20% withholding on plan checks | 26 U.S.C. 3405(c) | A 401(k) check paid to you arrives 20% short |
| 8 | IRA prohibited transactions for gold | 26 U.S.C. 4975; 408(e)(2) | No personal use and no selling your own coins to the IRA; a breach treats the whole IRA as paid out at its January 1 value |
| 9 | Required minimum distributions | 401(a)(9); 4974 | From 73 (75 if born in 1960 or later); 25% tax on a missed amount, 10% if fixed in time |
| 10 | 7-day right to revoke | Treas. Reg. 1.408-6 | Undo a new IRA within at least 7 days for a full refund; this does not cancel the dealer's coin order |
These rules come from 26 U.S.C. 408 and IRS Publication 590-A.
A wrong coin costs real money. Under 408(m)(1), a Krugerrand bought for $50,000 counts as a $50,000 withdrawal that year. The IRS collectibles rule page explains why.
How are gold IRA withdrawals taxed?#
Withdrawals from a traditional gold IRA are taxed as ordinary income, cash or coins, and qualified Roth withdrawals are tax-free. Gold held outside an IRA is taxed as a collectible, at up to 28% on the gain; that rate never applies inside an IRA. Coins you take out are valued at their market price that day (Form 1099-R).
A Roth withdrawal is qualified after 5 years and age 59 1/2 (26 U.S.C. 408A). The table below compares the same gain in three accounts at the 24% bracket in 2026.
| Account | Tax on a $50,000 purchase that grows to $80,000 |
|---|---|
| Taxable account (bullion held outside an IRA) | $30,000 gain x 24% = $7,200; 28% is only a cap |
| Traditional gold IRA | The whole $80,000 is ordinary income when withdrawn: about $19,200 at a flat 24% |
| Roth gold IRA, qualified withdrawal | $0 |
The rows are not the same kind of money. The traditional IRA's $50,000 went in before tax, so all $80,000 is taxed on the way out. Forms, withholding and state rules are in gold IRA taxes.
Withdrawals before 59 1/2 also owe a 10% additional tax on top of income tax, unless an exception applies (26 U.S.C. 72(t)). IRA custodians withhold 10% for federal tax by default, which you can change on Form W-4R.
IRA withdrawals do not count as "net investment income", so the extra tax some higher earners pay on investment income does not apply to them.
The 28% is only a cap (IRS Topic 409; 26 U.S.C. 1(h)). In the 24% bracket, a gain on gold held outside an IRA is taxed at 24%, as the 28% collectibles rate page explains.
How do you move a 401(k) or IRA into a gold IRA without taxes?#
Move it custodian to custodian: an IRA transfer or a direct 401(k) rollover is not taxed and has no withholding. A check made out to you starts a 60-day clock and, from a 401(k), 20% withholding.
The table compares the ways money can, or cannot, reach a gold IRA.
| Method | Tax withheld | Limit | Main risk |
|---|---|---|---|
| IRA-to-IRA transfer | None | No limit on number or amount | Low: the money never reaches you |
| Direct rollover from a 401(k) or other plan | None | No limit | Low: the check is payable to the new custodian |
| 60-day (indirect) rollover | 20% from a plan (26 U.S.C. 3405(c)); 10% default from an IRA | One IRA-to-IRA 60-day rollover per 12 months | Miss day 60 and it is taxable; the same property must go back |
| Non-governmental 457(b) or nonqualified annuity | n/a | Cannot be rolled into an IRA at all | Not an option for a gold IRA |
Money from a 403(b) or the federal Thrift Savings Plan (TSP) also works best custodian to custodian, as covered in gold IRA rollover.
The same trap hits smaller accounts. Take $100,000 as a check at 58, in the 22% bracket, and deposit only the $80,000 you received. It costs $6,400, or $4,400 if you left that job in or after the year you turned 55.
The plan paperwork, such as the payee line on the check, is in 401(k) to gold IRA rollover.
If you ever file for bankruptcy, money rolled over from a 401(k) stays fully protected. It does not count toward the $1,711,975 limit that protects other IRA money (11 U.S.C. 522(n), for cases filed from April 1, 2025).
Whether 20% is withheld depends on the rollover type, as direct vs indirect rollover shows step by step.
What happens at 73? Required minimum distributions from gold#
From age 73, or 75 if you were born in 1960 or later, you must withdraw a minimum each year in cash or in coins. If you were born in 1959, proposed IRS regulations (REG-103529-23) say 73, but they are not final.
Gold IRA required minimum distributions work like any IRA's. Divide the balance on December 31 of the year before by an IRS life-expectancy number (26.5 at 73, 24.6 at 75). A $100,000 gold IRA at 75 must pay out $4,065 (IRS Publication 590-B).
That combining works only across traditional IRAs, not with a 401(k). The full gold IRA required minimum distributions rules also cover the first-year deadline.
RMDs rarely come out in whole coins. Say you hold 60 Gold Eagles valued at $4,300 each on December 31, or $258,000. At 75 the RMD is $10,487.80, or 2.44 oz, but 2.53 oz if the coins are processed at $4,150. The table compares the options at Equity Trust (Rev. 081726).
| RMD option (60 Gold Eagles, age 75) | Result |
|---|---|
| Take 3 coins in kind | $12,450 taxable, $1,962 more than required with no credit next year; $175 in fees with shipping |
| Take 2 coins and sell 1 | $205 in fees |
| Sell 3 coins | $30 plus the buyback gap |
| Take the whole RMD from a stock IRA | $0 at the gold IRA |
Request it by early December, because the processing date is the valuation date. A missed RMD costs a 25% excise tax, or 10% if you fix it in time (26 U.S.C. 4974). Roth IRAs have no lifetime RMDs. The gold IRA RMD calculator shows the amount in ounces as well as dollars.
Who Is a Gold IRA For, and How Much Gold Should It Hold?#
A gold IRA fits people moving $50,000 or more from an old 401(k) or IRA into physical metal; under about $10,000, it costs too much. No rule sets how much gold to hold. From 1972 to 2025, 10% to 20% gold in a 60/40 mix cut the swings more than it changed the return. The table below matches 6 situations to the numbers, as of September 2026.
| Your situation | What the numbers say | Where to read next |
|---|---|---|
| Under about $10,000 to invest | Fixed fees take 2.15% to 6.56% a year; a gold ETF in an IRA you already have costs 0.10% to 0.40% a year (fund filings, 2025-2026) | Gold IRA vs gold ETF |
| $50,000 or more in an old 401(k) or IRA, and you want physical metal | Account fees fall to 0.43% to 1.31% a year; the dealer's spread decides the outcome | What a gold IRA costs over 10 years |
| You need the money within about 5 years | Bullion round trip about 5% to 7%, plus price swings (gold fell 23.3% from its January 2026 record) | The 7 downsides |
| Retired at 55 to 59 1/2 and still drawing on the 401(k) | Rolling over ends penalty-free withdrawals after leaving a job in or after the year you turn 55 (the rule of 55) | 401(k) to gold IRA rollover |
| You want to hold the gold yourself | Not possible in an IRA; buy outside it with after-tax money | Gold IRA vs physical gold |
| Someone urges you to move "everything" into gold | The CFTC lists "Putting all your retirement savings in precious metals is safe and secure" as a lie (2024) | Gold IRA scams |
Allocation means the share of your savings in each kind of asset. A 60/40 portfolio holds 60% stocks and 40% bonds. The table shows gold inside one (SafeOunce computation on Damodaran data).
| Gold share in a 60/40 portfolio, 1972 to 2025 | Return a year | Volatility |
|---|---|---|
| 0% | 9.4% | 11.2% |
| 10% | 9.7% | 9.9% |
| 20% | 9.9% | 9.6% |
No sourced "5% to 10% in gold" rule exists. The data behind how much gold to hold in an IRA are laid out in full.
Before you move money, ask one question: would a 23% fall in your gold, like the one from January to September 2026, change your plans?
How Do You Check a Gold IRA Company Before You Sign? 8 Questions#
Before you sign with a gold IRA company, get its coin and buyback prices in writing, read its contract, and search regulator and court records. Custodians do not vet dealers or prices for you (SEC Initial Decision No. 1030, 2016).
Their contracts set your costs. Every company SafeOunce covers, including those that failed, is listed with its rating status in gold IRA companies. The 8 checks below follow the order of a sale.
- Get a written price per coin and the dealer's buyback price on the same day.
- Find the highest spread the contract allows. American Hartford Gold's September 2026 agreement allows "up to 19.99%" on bullion; Lear Capital's December 2025 terms allow 2% to 35%.
- Ask which custodian and which fee schedule applies, by name and revision.
- Ask which depository holds the metal, whether storage is commingled or segregated, and whether the account is in your IRA's name, not a dealer's master account.
- Read the cancellation terms. Lear allows 24 hours after the invoice, and American Hartford Gold allows 7 days on non-bullion only. Your separate 7-day IRA right does not cancel the coin order.
- Read the arbitration clause (a private hearing instead of a court case) and the claim deadline. Consumer filing fees are capped at $225 at the American Arbitration Association and $250 at JAMS (as of September 2026).
- Search Better Business Bureau (BBB) complaints, the CFTC, the SEC, your state securities regulator and court records. The steps are in how to check a gold IRA company. A BBB grade mostly measures complaint handling: 90 of its 100 positive points relate to complaints (BBB method, read September 2026).
- Refuse 4 pitches: "IRS-approved," "move everything," "free silver" and "keep it at home." The CFTC's 2024 list of precious metals IRA "lies" also includes "You're speaking to an expert advisor" and "There are secret tax loopholes."
A "best" list can be paid. One April 27, 2026 GlobeNewswire press release ranking three sellers carried links that pay the publisher for sign-ups, without saying so. The best gold IRA companies page ranks companies on published criteria; no company pays for its place.
Buyback promises need the same care. Contracts from American Hartford Gold, Lear Capital and Preserve Gold say the law bars them from promising to buy back your metal (read September 2026). So a buyback is never guaranteed.
Sellers can also fail. Rosland Capital filed a liquidating Chapter 11, a bankruptcy to wind down its business, on July 2, 2026. It owed about $60.8 million to about 617 customers (Bankr. C.D. Cal. 2:26-bk-16650-BB).
The warning signs and real cases, from Red Rock to Rosland, are in gold IRA scams.
Gold IRA vs Physical Gold, Gold ETFs and Other Metal IRAs#
For retirement money, a gold ETF in your current IRA costs least, while a gold IRA lets you own real coins under IRA tax rules. Coins you keep yourself cost after-tax money, and a gold fund in a 401(k) is a fourth route.
Each comparison below uses the same yardsticks: cost, tax and control. All head-to-heads, including company matchups, are in gold IRA comparisons.
Is it better to have physical gold or a gold IRA?#
For money already in an IRA, a gold IRA buys more gold, because taking the money out first triggers tax. A gold IRA is tax-deferred: no tax until you withdraw. The table compares the two for a married couple, age 62, with $80,000 of other taxable income in 2026.
| Question | Physical gold outside an IRA | Gold IRA |
|---|---|---|
| Who holds it | You | A custodian, in a vault |
| What you may own | Any amount, legal since December 31, 1974 | Eligible gold only |
| Using $100,000 of IRA money | Withdraw it and pay $19,920 of extra federal tax; buys $77,724 of gold | $0 tax; buys $97,059 of gold at a low-cost dealer (3.03% premium) |
| Tax on gains | Up to the 28% collectibles rate | Ordinary income when withdrawn (traditional) |
| Yearly costs | Your own safe or insurance | Custodian and storage, $215 to $656 a year on $50,000 (2026) |
The full tax math of gold IRA vs physical gold is on its own page.
Gold IRA vs a gold ETF in the IRA you already have#
A gold ETF in the IRA you already have costs far less than a gold IRA, about $1,035 versus $6,341 on $100,000 over 10 years. The trade-off: you own fund shares, not coins.
| Route ($100,000, 10 years, gold flat, fees paid outside) | Total cost |
|---|---|
| Gold ETF GLDM (0.10% a year) | $1,035 |
| Low-cost gold IRA (3.03% Gold Eagle premium, sold at 99% of spot, Equity Trust commingled storage) | $6,341 |
| Gold IRA at a 23.4% spread (Lear Capital's 2022 average) | $29,293 |
These numbers assume commingled storage and a 3.03% Gold Eagle premium, unlike the 10-year cost table. An IRA may hold gold ETF shares without breaking the collectibles rule (IRS private letter ruling 200732026). The yearly fund fee, called the expense ratio, is 0.10% for GLDM, 0.25% for IAU and 0.40% for GLD (fund 10-K filings, 2025-2026). Other funds are compared in gold IRA vs gold ETF.
Fidelity also sells bullion inside its own IRAs. The minimum purchase is $1,000, and storage costs 0.125% a quarter, or 0.5% a year (fee schedule, September 29, 2026). The fees are on Fidelity gold IRA.
Gold IRA vs 401(k): should you move the money?#
Moving 401(k) money to a gold IRA costs you 3 plan features, so it fits only if you will not need them. The 3 features are listed below.
- Rule of 55: penalty-free withdrawals after you leave a job in or after the year you turn 55.
- Still-working delay: no RMDs from a current employer's plan while you still work there.
- Plan loans: the lesser of $50,000 or half the vested balance (the part you fully own), with a $10,000 floor (26 U.S.C. 72(p)(2)(A)).
The side-by-side is in gold IRA vs 401(k). Few plans let you hold gold in a 401(k) as coins; it depends on the plan's menu.
Silver, platinum and palladium IRAs#
The same IRA can hold silver, platinum and palladium under the same rules; only the purity test differs. Silver must be at least .999 fine, and platinum and palladium .9995. The table shows each metal's test, its named US coin and its LBMA price on September 28, 2026.
| Metal | Minimum fineness | Named US coin | LBMA price, September 28, 2026 |
|---|---|---|---|
| Silver | .999 | Silver Eagle, 1 oz | $61.33 |
| Platinum | .9995 | Platinum Eagle, including proofs | $1,731.85 |
| Palladium | .9995 | None; the Palladium Eagle qualifies as bullion only | $1,219.25 |
Silver swings harder than gold: it fell 48.2% from its LBMA record of $118.45 on January 29, 2026 to September 28, 2026. Each metal has its own guide: silver IRA, platinum IRA and palladium IRA.
Gold IRA frequently asked questions#
These 9 answers cover the questions readers ask most after the basics.
Can you put gold you already own into an IRA?#
No. IRA contributions must be cash, so coins you already own must be sold and the cash contributed within the yearly limit. IRS Publication 590-A says property cannot be contributed (26 U.S.C. 408(a)(1)). Selling your own coins to your IRA is also a prohibited transaction (26 U.S.C. 4975). The 2026 limits are in gold IRA contribution limits.
Does a gold IRA pay interest or dividends?#
No. Gold pays no interest or dividends, so all of a gold IRA's return comes from the price, minus its fees. Ramsey Solutions (updated March 19, 2026) puts it this way: "They don't produce anything, they don't pay dividends, and they don't earn interest." More on does a gold IRA pay interest.
Are free gold IRA kits worth requesting?#
Not for facts: a free gold IRA kit is a sales brochure, and the request form gives the seller your phone number. Birch Gold's 2026 kit runs 24 pages and requires consent to autodialed, prerecorded and ringless voicemail marketing. See what is inside free gold IRA kits.
Why do Dave Ramsey and Warren Buffett say no to gold?#
Both say gold produces nothing, and Ramsey adds that it pays no income and swings in price. Buffett wrote in his 2011 shareholder letter (published February 2012) that an ounce of gold stays one ounce forever. Berkshire Hathaway owned shares of the miner Barrick Gold only briefly in 2020, not the metal. More on why Dave Ramsey and Warren Buffett say no to gold.
Can the government confiscate the gold in your IRA?#
No seizure order like the 1933 one has been issued since, and Americans may own gold again from December 31, 1974 (Pub. L. 93-373). Executive Order 6102 (April 5, 1933) required gold to be handed in by May 1, 1933 for "an equivalent amount" of paper money.
Still, no coin is "confiscation-proof." Some sellers push collector coins by saying "the government can't seize" them, and the CFTC lists that pitch as a lie (2024). More on can the government confiscate your gold.
Does the IRS know about the gold in your IRA?#
Yes. Your custodian reports the account's year-end value to the IRS on Form 5498 every year and every withdrawal on Form 1099-R. Form 5498 box 5 shows the December 31 fair market value, and Form 1099-R box 1 shows the value of any coins distributed. More in does the IRS know about your gold.
Can you cancel a gold IRA after you sign?#
Yes, partly: for at least 7 days after opening, you can cancel the IRA itself for a full refund. The dealer's coin order has its own, usually shorter, cancellation terms. The refund comes "without adjustment for such items as sales commissions, administrative expenses or fluctuation in market value" (Treas. Reg. 1.408-6). Here is how to cancel a gold IRA in writing.
What happens to a gold IRA when you die?#
It passes to the beneficiaries you named with the custodian, and most non-spouse heirs must empty it within 10 years (26 U.S.C. 401(a)(9)(H)). A spouse may treat the IRA as their own (IRS Publication 590-B). The account's value also counts in your estate. Keep your gold IRA beneficiaries current on the custodian's form.
What do spot price, spread and melt value mean?#
Spot is today's price for one ounce of pure metal, and melt value is a coin's metal content at that price. The premium, or spread, is what you pay above it. A troy ounce is 31.1034768 grams; a 1 oz Gold Eagle weighs 33.931 grams but holds one troy ounce of gold. The precious metals IRA glossary explains 60 more terms.