What Is a Gold IRA?

A gold IRA gives retirement savers a way to own tangible precious metals inside a tax-advantaged account. It works like a Traditional or Roth IRA for tax purposes, but because it holds a physical asset, it must be self-directed and the metal must be stored at an approved depository rather than at home.

How a gold IRA works

You open a self-directed IRA with a specialized custodian, fund it with a contribution or rollover, buy eligible metal through a dealer, and have it vaulted at an IRS-approved depository. The account grows tax-deferred (or tax-free in a Roth), and you take distributions in retirement either in cash or as the physical metal.

Which metals qualify

The IRS sets minimum fineness standards: gold must be at least .995 pure (the American Gold Eagle is a statutory exception), silver .999, and platinum and palladium .9995. Collectible and rare coins generally do not qualify.

Storage and custody

Gold IRA metal cannot be kept at home or in a personal safe-deposit box; doing so is treated as a taxable distribution. A custodian administers the account and an approved depository (such as Delaware Depository or Brink's) provides insured, audited storage.

Who a gold IRA suits

Gold IRAs suit investors who want to diversify a portion of retirement savings into a tangible inflation hedge and are comfortable with fees and the lack of dividend income. Most advisors suggest limiting precious metals to a modest share of a portfolio.