How To Move Your IRA To Gold

Know Your Options: Transfer Versus Rollover And What Qualifies

When you move your IRA to gold, you have a couple options. A transfer, and a rollover. This article will dive into both options as well as talk about the rules involving moving an IRA to gold.

Eligible Accounts And Timing Rules

Most retirement accounts can fund a Gold IRA, but the path differs:

IRAs to IRAs: Traditional, Roth, SEP, and SIMPLE IRAs are eligible. SIMPLE IRAs must be at least two years old before moving to a non-SIMPLE IRA without penalty.
Employer plans: Old 401(k), 403(b), 457(b), and TSP balances can usually roll to a self-directed IRA. Active plans may allow in-service rollovers, plan rules govern.

Two ways to move money:

Direct transfer (trustee-to-trustee): The money goes directly from one IRA custodian to another. No taxes withheld, no 60-day clock, and no “one-rollover-per-year” limit. This is the cleanest route.
Indirect rollover: The account owner receives the funds and has 60 days to recontribute to a new IRA. Employer plan rollovers paid to the individual generally face 20% mandatory withholding: they must replace that amount out-of-pocket to avoid taxes on the withheld portion. Only one IRA-to-IRA rollover is allowed per 12-month period per person.

Approved Metals, Fineness Standards, And Forms

The IRS permits certain bullion coins and bars, collectibles and most numismatics are out. Key standards:

Gold: Minimum .995 fineness (24k), with a specific exception for American Gold Eagles (.9167) allowed by statute.
Silver: .999 fineness.
Platinum and Palladium: .9995 fineness.

Commonly approved examples include American Eagle (gold, silver, platinum), American Buffalo (gold, .9999), Canadian Maple Leaf (gold, silver, platinum), and bars from accredited refiners (e.g., LBMA Good Delivery). Pre-1933 coins, commemoratives, and graded numismatics usually don’t qualify.

Custodians And IRS-Approved Depositories

Gold must be held by a qualified IRA custodian and stored at an IRS-approved depository, no home safes, no safety deposit boxes in the owner’s name. Reputable self-directed IRA custodians work with third-party depositories such as Delaware Depository, Brink’s, IDS, and others. They’ll provide:

Account administration and reporting (Forms 5498, 1099-R).
Transaction processing and permitted asset reviews.
Coordination with the depository for delivery, storage, and insurance.

Step-By-Step: Moving An IRA To A Gold IRA

Before anything, request a gold IRA kit. This will be a guide that educates you on why gold makes sense to invest in with your retirement savings.

Open A Self-Directed IRA And Select A Custodian

Start by opening a self-directed IRA (Traditional or Roth) with a custodian that allows precious metals. They’ll collect ID, beneficiary information, and plan type details.

Confirm:

They support metals purchases and have experience with IRS-approved products.
Their fee schedule (setup, annual admin, transaction charges) in writing.
How they handle trade execution timing and price locks.

Choose A Depository And Storage Type

Next, choose an IRS-approved depository. Two common storage options:

Commingled/pooled: Metals are stored with like items: they receive “like” equivalents when distributing.
Segregated: Their exact coins/bars are kept in a labeled compartment. Usually higher cost but clearer chain of custody.

Ask about audits, insurance coverage, and reporting. Most depositories provide all-risk insurance at replacement value.

Initiate A Direct Trustee-To-Trustee Transfer

Complete the custodian-to-custodian transfer form (or employer plan rollover paperwork). With a direct transfer, funds move between trustees without touching the individual’s hands, so there’s no 60-day clock or withholding. Timelines vary but 3–10 business days is common.

Select IRS-Approved Gold And Place The Order

Once cash settles in the new IRA, submit a buy direction letter to the custodian. Typical IRA-friendly choices:

Government-minted bullion coins: American Gold Eagles or Buffalos, Canadian Maple Leafs.
Accredited bars: 1 oz to 1 kg bars from LBMA-approved refiners.

They can also add silver, platinum, or palladium that meet fineness rules. The custodian sends funds to the dealer: the dealer ships directly to the depository.

Confirm Settlement, Chain Of Custody, And Statements

After delivery, the depository issues a receipt detailing items, weights, and, if bars, serial numbers. The custodian’s monthly or quarterly statements should reconcile with the depository records. Keep trade confirmations, invoices, and statements together: this paper trail matters at audit time and when selling or taking distributions.

Taxes, Penalties, And Compliance Essentials

Traditional Versus Roth Tax Treatment

Traditional Gold IRAs grow tax-deferred. Withdrawals are taxed as ordinary income. Required minimum distributions (RMDs) begin at age 73 under current law.
Roth Gold IRAs grow tax-free: qualified withdrawals are tax-free and have no RMDs during the original owner’s lifetime. Nonqualified Roth distributions may trigger taxes on earnings and potential penalties.

Early distributions before age 59½ can incur a 10% penalty on top of income tax unless an exception applies.

The 60-Day Rule And One-Rollover-Per-Year Limit

If they choose an indirect rollover, funds must land in the new IRA within 60 days. Miss the window and it’s a taxable distribution, plus possible 10% penalty. The one-rollover-per-year rule applies to IRA-to-IRA rollovers across all IRAs, not per account. It doesn’t apply to direct trustee transfers or to rollovers from qualified employer plans to IRAs.

Prohibited Transactions And Self-Dealing To Avoid

The IRA must stay at arm’s length from the owner and other disqualified persons (spouse, ancestors/lineal descendants, and entities they control). Prohibited actions include:

Taking personal possession or using the metals as collateral.
Buying from or selling to oneself or related parties.
Storing metals at home or in a personal safe deposit box.

A single prohibited transaction can disqualify the entire IRA, making all assets immediately taxable. When in doubt, ask the custodian’s compliance team before acting.

Costs, Liquidity, And Risks To Weigh

Fees To Expect: Setup, Custody, Storage, And Insurance

Expect a few line items:

Account setup: ~$50–$100 (varies).
Annual administration: roughly $75–$300.
Storage: flat $100–$300 per year or percentage-based (about 0.5%–1.0% of value). Insurance is typically embedded in storage.
Transaction fees: purchase/sale processing and wire fees.

Get every fee in writing. Small percentage differences compound over years.

Spreads, Premiums, And Pricing Transparency

They won’t pay “spot.” Bullion carries dealer premiums: typical all-in spreads on common coins/bars run ~3%–10%, though they can be higher during volatile markets or on niche products. Best practices:

Compare at least two dealers’ live quotes.
Favor liquid, widely recognized bullion over high-commission numismatics.
Ask for a written trade confirmation showing spot, premium, and total.

Liquidity, Buybacks, And Exit Strategy

Gold is generally liquid, but IRA mechanics add steps. To raise cash or take distributions, they can:

Sell through the custodian/depository network back to a dealer (proceeds settle in the IRA as cash).
Take an in-kind distribution of coins/bars (taxable at fair market value if from a Traditional: Roth rules apply for qualified distributions). Shipping/insurance may apply.

Ask depositories and dealers about typical settlement times and buyback policies before buying.

Portfolio Fit: Allocation And Product Choices

How Much To Allocate And When To Rebalance

There’s no universal number, but common ranges:

5%–10% for broad diversification and inflation hedging.
Up to 10%–15% for those with higher conviction in hard assets, and the stomach for commodity volatility.

Rebalance annually or when allocations drift outside set bands (e.g., ±20% of target). Rebalancing enforces “sell high, buy low” discipline and keeps risk in check.

Bullion Coins Versus Bars (And What The IRS Allows)

Coins are easier to trade in small increments and often enjoy stronger market recognition. Bars can reduce per-ounce premiums at larger sizes but may have tighter buy/sell spreads only at higher tiers. For IRA purposes:

Stick to IRS-approved bullion coins (American Eagle, Buffalo, Maple Leaf) and bars from accredited refiners.
Avoid proofs, limited editions, and collectibles pitched with big markups, eligibility and liquidity can be issues.

Considering Other Metals And Diversification

Beyond gold, an IRA can hold silver (.999), platinum (.9995), and palladium (.9995). Each has different drivers:

Silver: Higher volatility, industrial demand kicker: lower price per unit allows finer position sizing.
Platinum/Palladium: More industrial-cycle sensitive: thinner markets, potentially wider spreads.

Diversifying across metals can smooth outcomes, but watch cumulative storage and trading costs.

After The Move: Maintenance And Common Pitfalls

RMDs, In-Kind Distributions, And Selling Metal

Traditional IRA owners must begin RMDs at 73. They can:

Sell enough metal in the IRA to raise cash for the RMD.
Or take an in-kind distribution of coins/bars equal to the RMD amount, taxed at fair market value on the distribution date.

Roth IRAs have no owner-lifetime RMDs. Keep an eye on pricing dates: month-end valuations can impact reported balances and RMD calculations.

Do Not Take Possession Personally

“Home storage IRAs” sound convenient, and invite IRS trouble. The metals must sit with an IRS-approved custodian and depository. Personal possession, related-party storage, or using the gold as loan collateral can blow up the IRA’s tax status.

Keep Beneficiaries And Documentation Current

Life happens. Update beneficiary designations after marriages, divorces, or new additions to the family: these override wills for IRA assets. Also:

Retain invoices, bar serial lists, depository receipts, and statements.
Reconcile custodian statements to depository records annually.
Review fee schedules each year and renegotiate where possible.

Common pitfalls to avoid: paying oversized premiums for fancy coins, mixing non-approved metals, missing the 60-day window on indirect rollovers, and forgetting the SIMPLE IRA two-year rule.

Frequently Asked Questions

What’s the difference between a transfer and a rollover when you move your IRA to gold?

A direct trustee-to-trustee transfer moves funds between IRA custodians with no taxes withheld, no 60‑day deadline, and no one‑rollover‑per‑year limit. An indirect rollover pays you first; you have 60 days to redeposit, employer plans often withhold 20%, and IRA-to-IRA rollovers are limited to once per 12 months.

Which accounts qualify for a Gold IRA rollover, and are there timing rules?

Traditional, Roth, SEP, and SIMPLE IRAs generally qualify. SIMPLE IRAs must be at least two years old to move to a non‑SIMPLE IRA without penalty. Old 401(k), 403(b), 457(b), and TSP balances typically roll into a self-directed IRA; active plans may allow in‑service rollovers depending on plan rules.

What gold and other metals are IRS-approved for a Gold IRA?

The IRS allows bullion that meets fineness standards: gold .995 (exception: American Gold Eagles at .9167), silver .999, and platinum/palladium .9995. Approved examples include American Eagle, American Buffalo, Canadian Maple Leaf, and bars from LBMA‑accredited refiners. Collectibles, proofs, and most numismatics usually don’t qualify.

How to move your IRA to gold step by step, and how long does it take?

Open a self-directed IRA with a metals‑approved custodian, choose an IRS‑approved depository, then initiate a direct trustee‑to‑trustee transfer. After cash settles, direct the purchase of IRS‑approved bullion shipped to the depository. Transfers commonly take 3–10 business days. Keep confirmations, depository receipts, and statements for audit and distributions.

Do Gold IRAs pay interest or dividends?

Physical bullion in a Gold IRA does not generate interest or dividends; returns rely on price changes, while storage and custodial fees reduce net performance. Traditional Gold IRAs still require RMDs starting at age 73; you can sell metal inside the IRA for cash or take in‑kind distributions to satisfy them.

Is a gold ETF the same as moving your IRA to physical gold?

No. A gold ETF in a regular brokerage IRA provides paper exposure to gold prices and is held like a stock or fund. Moving your IRA to gold (a physical Gold IRA) involves IRS‑approved coins/bars, a specialized custodian, and storage at an approved depository; personal home storage isn’t allowed.