Gold IRA Rules & Regulations: Laws to Follow
The IRS has strict rules for Gold IRAs that must be followed to avoid potential tax penalties. Since these self-directed IRAs are a bit different holding physical assets, they also come with unique regulations and rules to be aware of. Gold IRA Planners has listed below the key rules you'll need to follow when opening a Gold IRA.
You Must Use a Self-Directed IRA to Hold Physical Gold
A standard IRA cannot include physical gold. Only a self-directed IRA (SDIRA) allows for alternative assets like gold or other IRS-approved metals. Under IRC §408(m), custodians of SDIRAs must allow investments beyond paper assets, provided they meet IRS-mandated purity standards. Repositioning retirement savings into a Gold IRA effectively creates a self-directed IRA (SDIRA) governed by IRS Publication 590, allowing you to legally hold physical precious metals in your retirement account.
Your Gold IRA Must Be Managed by an IRS-Approved Custodian
A Gold IRA requires a third-party custodian to meet IRS compliance. The custodian oversees paperwork, submits annual IRS reporting, and coordinates storage. Custodians are strictly administrative and don't make investment decisions but do enforce that all purchases, sales, and distributions follow IRS rules.
The Gold IRA provider you choose will work with a reputable custodian they have partnered with to facilitate the legal requirements and custodialize the physical metals in an IRS-approved depository. These custodian requirements are in place to ensure retirement investments in gold are secure like other types of assets.
Avoid Prohibited Transactions to Maintain IRA Compliance
Prohibited transactions, as defined under IRC §4975, can disqualify your Gold IRA and result in immediate taxes. Violations to avoid include:
- Purchasing gold from, or selling gold to, a “disqualified person” (such as yourself, your spouse, or a business you control).
- Attempting to collateralize IRA-owned gold or using it as collateral for a personal loan.
- Taking personal possession of IRA-owned metals before an official distribution event.
Breaking these rules results in your IRS losing its tax-advantaged status and can lead to the entire account becoming taxable in the year the violation happens.
Only IRS-Approved Metals Are Allowed
Only IRA-eligible metals are allowed in a Gold IRA and must meet purity requirements of 99.5% for gold, 99.9% for silver, and 99.95% for platinum and palladium. IRA-allowed precious metals are listed on our metals page. Precious Metals IRAs are limited to IRA-eligible gold and other metals in the self-directed Individual Retirement Account, no other types meet the requirements. The reason alternative retirement assets are subject to strict rules on what can be held is to ensure their reliability as investments.
No Collectibles or Numismatics
Collectibles & numismatic coins (those valued for rarity, age, or condition) are not allowed in a Gold IRA, stated under under IRC §408(m)(2). Commemorative or graded coins do not qualify as "investment grade" metals. Avoid any dealers promoting collectible coins in a Gold IRA as only certain non-traditional assets are allowed.
Gold Must Be Stored in an IRS-Approved Depository
IRS rules require gold and other precious metals be stored in a third-party IRS-approved depository that meets strict security and insurance requirements. Your custodian will arrange the shipment of the metals to the depository, confirmed with a receipt to make sure your IRA records reflect the holdings. Taking personal physical possession is strictly prohibited and IRA gold cannot be stored at home.
Rollovers and Transfers Must Follow IRS Guidelines
While you can fund your Gold IRA with a trustee-to-trustee transfer, direct rollover, or indirect rollover, each method must follow IRS guidelines which varies between options.
A trustee-to-trustee transfer can only direct funds from an existing IRA to a tax-advantaged retirement account. A direct rollover is only available for employer plans where the plan administrator sends the funds to the SDIRA. An indirect rollover has a 60-day window where you receive the funds, but have to deposit them into a Gold IRA within that timeframe to avoid penalties and can only be done once per 12-month period per account owner. These funding rules on your gold investment can vary depending on the account you own. These rules apply to all other metals such as if you transfer an IRA to silver.
Gold IRAs Follow Standard IRS Contribution Limits
The standard IRS contribution limits apply to Gold IRAs, just like other IRAs. The limits of 2025 include $7,000 total across Traditional and Roth IRAs (under age 50), with a $1,000 catch-up contribution totaling $8,000 if aged 50 or older. If these limits are exceeded, an excess contribution penalty of 6% per year is applied until fixed. SEP and SIMPLE IRAs have separate, higher limits, but only apply if your Gold IRA was set up as a self-directed version of one of those.
Required Minimum Distributions (RMDs)
Traditional Gold IRA owners must begin Required Minimum Distributions (RMDs) at age 73 if born between 1951 and 1959, and at age 75 if born in 1960 or later, under the SECURE Act 2.0. The first RMD must be taken by April 1 of the year following the year you reach your applicable RMD age.
The RMD calculation uses the account's market value as of December 31 of the prior year. For accurate year-end reporting, metals are revalued monthly by the custodian at spot prices. Roth Gold IRAs are not required to take RMDs during the lifetime of the original account owner, however beneficiaries must still follow inherited IRA RMD guidelines.
In-Kind Distributions Are Allowed
Withdrawals from a Gold IRA can be made without penalties starting at age 59½. Once retired, you can request an in-kind distribution where you take the physical gold or convert it to cash within the IRA. Rebalancing or partial liquidation inside your SDIRA may involve taking an in-kind distribution of physical gold at retirement, allowing assets to be withdrawn without liquidation.
If you have a Traditional Gold IRA, distributions are taxed as ordinary income unless you held a Roth conversion. If you have a Roth Gold IRA, qualified distributions (held ≥5 years and age 59½+) are tax-free.
Taking an in-kind distribution terminates the tax-deferred status of those metals. The custodian will revalue your metal holdings based on spot price on the distribution date. Finally, your custodian will coordinate the shipping of your metals from the depository to your designated address, or sell the metals to send you a cash distribution.
Penalty-free early withdrawals are allowed if (1) you receive a distribution from a 401(k) plan that is rolled over into an IRA within 60 days, or (2) you qualify for a first-time homebuyer distribution (up to $10,000). Otherwise, early distributions incur a 10% penalty plus ordinary income taxes as stated by the IRS. These withdrawal rules must be followed just like an ordinary IRA and you'll see the same withdrawal limits like paper assets. Breaking these rules like taking possession outside a qualified withdrawal event can trigger severe or substantial penalties under IRC §4974 and disqualify the entire IRA.
Can I Add Other Metals Later or Reallocate Inside My Gold IRA?
You can add silver, platinum, palladium, or even more gold to your self-directed Gold IRA without opening a new account. You can also reallocate by selling gold within the IRA to purchase other IRS-approved metals. These reallocations are tax-deferred as long as funds stay within the IRA and the transaction is processed by your custodian.
Most reallocations or metal swaps inside a self-directed Gold IRA complete within 1–3 business days. Once the custodian receives a signed trade authorization, it coordinates with an IRA-approved precious metals dealer to lock pricing and complete the transaction. Timing depends on custodian processing speed, dealer invoice turnaround, and whether funds remain within the IRA to preserve tax-deferred treatment under IRS rules.
Start Planning Your Gold IRA
All of the rules mentioned above applies to all Precious Metals IRAs including Silver IRAs, Platinum IRAs, and Palladium IRAs. Understanding these rules makes it easier to start planning a Gold IRA in your retirement portfolio. Gold IRA Planners provides further resources so you can confidently plan out your self-directed IRA in physical metals.