How Does a Gold IRA Work? Account, Custody & Storage
A Gold IRA typically uses the same broad IRA tax framework as other individual retirement arrangements, but it adds a physical-metal transaction and storage layer.
1. Establish the IRA
You open an IRA with a trustee or custodian that supports the desired self-directed asset structure. The custodian is the account administrator; a metals dealer is not automatically the custodian.
2. Fund the account
Funding may come from an eligible contribution, direct rollover from a workplace plan, or a transfer from another IRA, subject to the applicable rules. IRS guidance distinguishes direct rollovers, trustee-to-trustee transfers and 60-day rollovers.
3. Select qualifying metal
The account acquires specific coins or bullion that fit the applicable IRA exception. Ask the custodian to confirm eligibility rather than relying solely on a salesperson's label.
4. Store and administer
The IRA's metal is held through the account's custody/storage arrangement. Annual custodian and depository charges are common, and the amount or method varies by provider.
5. Sell or distribute
Later, the account may sell metal for cash or handle a distribution according to account rules. Traditional IRA required minimum distribution rules can still matter; a physical asset does not eliminate retirement-account distribution requirements.
Continue your research
Sources & further reading
- IRS Publication 590-A — Contributions to Individual Retirement Arrangements (IRAs)
- IRS — Rollovers of retirement plan and IRA distributions
- IRS — Required minimum distribution FAQs
- CFTC/FINRA — 10 Things to Ask Before Buying Physical Gold, Silver, or Other Metals
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