IRS Rules for Gold IRAs: What Precious Metals Are Allowed

Before rolling your 401(k) into a Gold IRA, you need to understand the IRS rules governing what types of precious metals are allowed, how they must be stored, and what happens if you violate the rules. This guide covers everything you need to know.

Affiliate disclosure: This page contains sponsored links to Augusta Precious Metals, Birch Gold Group, and other Gold IRA companies. If you request an information kit or open an account through these links, we may earn a commission at no additional cost to you. This compensation does not influence our editorial reviews or comparisons.

IRS-Approved Precious Metals for IRAs

The IRS has specific purity requirements for metals held in an IRA:

Gold

• Minimum purity: 99.5% (24 karat)
• Exception: American Gold Eagle coins are allowed despite being only 91.67% pure (22 karat) — they are specifically exempted by Congress

Silver

• Minimum purity: 99.9%

Platinum and Palladium

• Minimum purity: 99.95%

Approved Gold Coins and Bars

Coins approved for Gold IRAs include:

• American Gold Eagle (1 oz, 1/2 oz, 1/4 oz, 1/10 oz)
• American Gold Buffalo (99.99% pure)
• Canadian Gold Maple Leaf
• Australian Gold Kangaroo/Nugget
• Austrian Gold Philharmonic
• British Gold Britannia

Gold bars: Must be 99.5%+ pure and produced by a NYMEX/COMEX-approved refiner or national government mint.

What Is NOT Allowed in a Gold IRA

• Collectible or numismatic coins — These are explicitly prohibited by IRS Code Section 408(m)
• Gold jewelry
• Gold held at home — Even if it meets purity requirements
• South African Krugerrands — Despite being .9167 fine gold, they are not approved for IRAs

Storage Requirements: The “Home Storage” IRA Myth

One of the most common misconceptions about Gold IRAs is the idea of “home storage.” You may see advertisements for “Home Storage Gold IRAs” — but these are misleading and potentially illegal.

IRS rules require that IRA precious metals be stored at an IRS-approved third-party depository. Storing IRA gold at home constitutes a distribution, triggering income taxes and the 10% early withdrawal penalty.

IRS-approved depositories include:

• Delaware Depository (Wilmington, DE)
• Brink’s Global Services
• International Depository Services
• CNT Depository

Required Minimum Distributions (RMDs) from a Gold IRA

Gold IRAs follow the same RMD rules as traditional IRAs. Once you reach age 73, you must begin taking minimum distributions annually. With a Gold IRA, this means:

• You can take an in-kind distribution (actual physical metal)
• Or sell the metal and take a cash distribution

Prohibited Transactions

The IRS prohibits certain transactions that could benefit you personally from your IRA before retirement. With a Gold IRA, avoid:

• Buying IRA gold from yourself or family members
• Selling your own gold to your IRA
• Using IRA gold as collateral for a loan

Violating prohibited transaction rules can cause your entire IRA to be deemed distributed, creating a massive tax bill.

Resources

For more information, see IRS Publication on Self-Directed IRAs and our guide on rolling over your 401(k) without penalty.