Key Takeaways
- 1Gold must be .9995 fineness (except American Eagles at .9167).
- 2Silver must be .999 fineness.
- 3Metals must be stored in an IRS-approved non-bank depository.
- 4You cannot take personal possession of the metals (no home storage).
- 5Only 24k bullion bars and specific government-minted coins are allowed.
- 6Collectible 'numismatic' coins are generally prohibited or ill-advised.
Investing in a Precious Metals IRA creates a powerful tax shelter for your wealth, but it comes with strict rules. The IRS (Internal Revenue Service) has specific requirements for the purity, storage, and handling of assets.
Fineness (Purity) Requirements
Not all gold qualifies. To be eligible for an IRA, metals must meet minimum fineness standards:
- Gold: .995+ (99.5% pure)
- Silver: .999+ (99.9% pure)
- Platinum: .9995+ (99.95% pure)
- Palladium: .9995+ (99.95% pure)
The American Eagle Exception
Approved Coins & Bars
Based on the purity rules, these are the most common allowed investments:
- American Gold/Silver/Platinum Eagles
- Canadian Maple Leafs
- Australian Kangaroos/Nuggets
- Austrian Philharmonics
- PAMP Suisse/Credit Suisse Bars (.9999 fine)
NOT Allowed: South African Krugerrands, Pre-1933 Gold Coins (unless deemed bullion), Numismatic/Collectible Coins (generally).
Strict Storage Regulations
This is the most violated rule. You cannot hold the metals yourself.
IRC Section 408(m) requires that physical coins and bars be held by a trustee or custodian. This practically means they must be stored in an IRS-approved, insured depository (like Delaware Depository or Brink's).
Warning: Home Storage
Prohibited Transactions
You cannot deal with "disqualified persons" concerning your IRA assets. This means:
- You generally cannot sell gold to your IRA.
- You cannot buy gold from your IRA personally (without taking a distribution).
- You cannot use the gold (e.g., wearing jewelry owned by the IRA would be disallowed, though jewelry is generally prohibited anyway).
Taking Distributions
Age 59½ Rule: You can take penalty-free distributions.
RMDs: Start at age 73 for Traditional IRAs (Roth IRAs have no RMDs).
In-Kind Distributions: You can choose to have the physical gold shipped to your home as your distribution. The value of the metal on the day it is shipped is used to calculate taxes.
Confused by the Rules?
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Find a Compliance PartnerRules & Regs FAQs
Can I store my IRA gold at home?
No. The IRS strictly prohibits 'home storage' of IRA assets. Doing so is considered a distribution, triggering immediate taxes and potential penalties. All metals must be held by an approved third-party depository.
What coins are approved for an IRA?
Common approved coins include American Eagle (Gold, Silver, Platinum), Canadian Maple Leaf, Australian Kangaroo, and Austrian Philharmonic. South African Krugerrands (gold) are NOT allowed due to lower purity.
At what age can I withdraw my gold?
You can begin taking penalty-free distributions at age 59½. You can choose to take the physical metal (shipped to your door) or sell it for cash within the IRA and withdraw the funds.
Written By
Thomas Richardson
Thomas is a former wealth manager with 20+ years of experience. He founded Rich Dad Retirement to expose the flaws of traditional "paper asset" retirement planning and educate Americans on the stability of physical precious metals.