Silver IRA Rules: Everything the IRS Requires
Understanding IRS rules is essential for a compliant Silver IRA. Learn about purity requirements, approved products, storage regulations, and how to avoid costly mistakes.
Silver IRA Rules at a Glance
.999 Purity
Minimum silver fineness required by IRS
Approved Depository
Must be stored in IRS-approved facility
$7,000 / $8,000
Annual contribution limits (under/over 50)
Silver Purity Requirements
Minimum Purity: .999 Fine (99.9% Pure)
The IRS requires all silver in an IRA to meet minimum purity standards. This ensures you're investing in quality bullion, not collectibles or numismatic items.
IRS-Approved Silver Products
- American Silver Eagle (99.9%)
- Canadian Silver Maple Leaf (99.99%)
- Austrian Silver Philharmonic (99.9%)
- British Silver Britannia (99.9%)
- Australian Silver Kangaroo (99.9%)
- Silver bars from approved refiners (.999+)
NOT Approved for IRAs
- Pre-1965 US silver coins (90% silver)
- Silver jewelry or silverware
- Rare or collectible coins
- Proof coins (with some exceptions)
- Silver below .999 fineness
Storage Requirements
IRS-Approved Depository Required
All Silver IRA holdings must be stored in an IRS-approved depository, not at home or in a personal safe deposit box.
Custodian Maintains Control
A qualified custodian must maintain control of your silver. You cannot take physical possession until you take a distribution.
Segregated or Non-Segregated
You can choose segregated storage (your silver kept separate) or non-segregated (mixed with other investors' silver of same type).
Insurance Required
Approved depositories must carry adequate insurance. Verify coverage amounts with your custodian.
Warning: "Home Storage IRA" Schemes
Some promoters advertise "home storage" or "checkbook IRA" schemes for precious metals. These are not approved by the IRS and can result in your entire IRA being treated as a distribution, triggering immediate taxes and penalties. Always use an IRS-approved custodian and depository.
2026 Contribution Limits
Annual Contributions
Catch-up contribution of $1,000 for those 50+
Rollover Amounts
No limit on rollover amounts
No limit on rollover amounts from 401(k), IRA, etc.
Distribution Rules by Age
10% early withdrawal penalty applies (plus income taxes on Traditional IRA distributions)
Exceptions:
- Disability
- First-time home purchase (up to $10,000)
- Qualified higher education expenses
- Certain medical expenses
Distributions allowed without penalty. Income taxes apply to Traditional IRA withdrawals.
Required Minimum Distributions (RMDs) must begin. Failing to take RMDs results in 25% penalty.
Exceptions:
- Roth IRAs have no RMDs during owner's lifetime
Common Violations to Avoid
Home Storage
Consequence: IRS considers this a distribution - 10% penalty + income taxes + potential loss of tax-advantaged status
How to avoid: Use only IRS-approved depositories through your custodian
Non-Approved Silver
Consequence: Disqualified investment - treated as distribution with taxes and penalties
How to avoid: Verify all products meet .999 purity and are IRA-approved
Self-Dealing
Consequence: Prohibited transaction - possible disqualification of entire IRA
How to avoid: Never buy silver from yourself or sell to yourself
Missed RMDs
Consequence: 25% penalty on the amount that should have been distributed
How to avoid: Work with custodian to calculate and take required distributions
Need Help Navigating Silver IRA Rules?
A reputable Silver IRA company handles compliance for you. Take our quiz to find a provider that ensures your account stays IRS-compliant.
Find a Compliant ProviderSilver IRA Rules FAQs
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Open a Fully Compliant Silver IRA
Augusta Precious Metals ensures your Silver IRA meets all IRS requirements. Their education-first approach helps you understand the rules before investing.