How To Hold Physical Gold In an IRA

If you are searching for how to hold physical gold in an IRA, this is the right article for you. A self-directed gold IRA account is a great way to invest in your future and gain wealth. With an individual retirement account, investors can invest in precious metals and other assets like real estate and cryptocurrencies. Doing all these is a great way to diversify your portfolio.

This article contains the following: 

  1. What is a Gold IRA?
  2. How to open a Gold IRA? 
  3. How to fund Gold IRA? 
  4. Gold IRA Guidelines to know 
  5. Benefits of having physical gold in an IRA
  6. Risk of Gold IRAs

What is a Gold IRA? 

Gold IRA is one of the fractions of an individual self-directed retirement account. Self-directed IRAs are an opportunity for you to invest in unique assets such as gold, silver, real estate, cryptocurrency, etc. They require custodians to supervise their IRA accounts. IRAs are a means of creating a reliable retirement plan because gold and other precious metals have historically increased in value over time.

Including gold in your retirement plan may help protect your wealth in various ways, lowering potential investment volatility and risks. Gold also serves as a hedge during recession and inflation. It also provides shelter from taxes while you save for potential long-term gains.

How To Open A Gold IRA

Opening a gold self-directed IRA and investing in gold is slightly more complex than opening a traditional or Roth IRA. What you must do is as follows:

Select a Self-Directed IRA Custodian

A custodian manages your self-directed IRA. Banks, trust companies, and other Internal Revenue Service-approved entities can serve as custodians (IRS). Investors can use self-directed IRA custodians to invest in alternative assets such as precious metals and real estate.

Locate a Gold Dealer.

Next, locate a gold dealer. You will instruct the IRA custodian to send funds to the dealer so that they can buy gold. It is essential to thoroughly conduct your research before deciding on a dealer and purchasing gold with your IRA funds. 

It would be best if your gold dealer is a member of an industry trade group, so you should keep this in mind as you continue your search. Although your IRA custodian may already have a couple of gold dealers, you should still conduct your research to ensure their quality.

Determine Which Products to Purchase

You must consult with the dealer to determine which products to purchase. The United States Mint’s American Eagle Bullion Coins are among the most popular options.

Choose a Depository

Gold IRA must be stored in an authorized depository. Your IRA custodian can suggest a depository, but it’s up to you to choose one that meets the requirements on your own. It is important to remember that you cannot keep gold for your IRA on your own.

Finish  the transaction

You can complete the transaction efficiently once you have secured a reliable custodian, dealer, and insured depository. Your IRA custodian will deal with all payments for you, and the dealer will send your gold to the depository.

How To Fund A Gold IRA


Send a check or wire transfer to your custodian to make a cash investment in your IRA. Transfer funds from an existing retirement account to your new IRA through a rollover. You must do this within 60 days of withdrawing the funds to avoid penalties. 


Ask your current retirement account administrator to transfer all or some of your funds to your new IRA custodian.

P.S. You can only contribute $6,000 per year to a self-directed gold IRA (or $7,000 if you’re 50 or older).

Gold IRA Guidelines To Know

Choose your gold with caution.

There are few gold coins and bars which are IRA-approved. IRA-eligible gold coins have specific requirements to meet. The Internal Revenue Code outlined these requirements on gold that can be kept in a Self-Directed IRA. 

They should have a fineness of at least .995 and be manufactured by either a government mint or a certified manufacturer. The only coins that are free from the purity guidelines are the  Gold American Eagle Bullion Coins. Suppose you choose an  IRA-eligible gold coin graded for condition by a certification organization (such as the Professional Coin Grading Service). In that case, the IRS will typically classify them as “collectibles” and thus not allow them in IRAs. If you want to grade your coins, you must wait until after you’ve liquidated your account and taken possession of them.

You must purchase gold from a custodian.

Even If you already have IRA-eligible gold coins, you can’t put them in a gold IRA even if they are in line with the requirements of the Internal Revenue Code.

You must use cash from your IRA to purchase gold from a custodian. Funds can be transferred from one custodian to another, rolled over, or deposited into a new IRA account. The custodian purchases the precious metals on behalf and arranges delivery to a third-party facility specializing in precious metals protection. You have complete control over the gold and depository.

IRA gold must be kept in a depository approved by the IRS.

You cannot keep IRA-eligible Gold in your house or a local security deposit box.

According to the IRS, highly refined bullion can be included in your IRA only if it is physically in possession of a bank or an IRS-approved nonbank trustee.

Storing your IRA gold at home is considered a distribution by the IRS, which means if you do this, you might lose the tax-deferred benefits that come with IRAs and face a penalty. Furthermore, if the IRS determines that the date your IRA gold entered your home was the distribution date, you may be subject to additional fines and taxes which you owed from that date.

You can take physical gold with you.

You can liquidate the gold in your Self-Directed IRA for either physical cash or take possession of your bullion gold at the end of your IRA term.

Unlike traditional retirement accounts, a gold-backed IRA grants you one of the unique physical assets —gold—that you can keep, sell later, use as currency in a crisis, or pass down to family members.

You can have multiple retirement accounts.

In addition to an employer-sponsored 401(k) account, as a worker, you can contribute to a Roth IRA, Traditional IRA, or Self-Directed IRA (k). If you do not exceed the maximum contribution limits, you can contribute to your retirement accounts throughout the tax year (based on your income level and age). To determine your eligibility, you should consult with your tax advisor.

Benefits Of Having Physical Gold In An IRA


Putting some of your money into gold is a good way to diversify and lower the overall risk of your portfolio. 

Economic downturn protection

Keeping your wealth in gold also helps minimize the losses if the economy — particularly the stock market — starts to experience a decline. 

Inflation protection

 As the dollar’s value falls, so does the dollar’s purchasing power.  Gold can be a great way to protect against this loss because its value is currently greater than that of the US dollar.

Wealth Increase

 Gold’s ever-increasing value may cause you to experience an increase in your wealth. Gold prices, for example, have risen significantly over the last decade. so by adding physical gold to your portfolio, you are setting yourself up to experience an increase in profit over time

Risks of Gold IRAs 

There is no tax-advantaged income

Interest, dividends, and other returns are not paid on gold bullion. As a result, it does not benefit from the tax-free growth attribute of IRA investing. You’d only be eligible for a tax break if you sold your gold for a profit.

Fee increases

Gold cannot be stored at home or in a bank’s safe deposit box.  So it would help if you had a custodian to store your gold and insure the gold in your IRA and also buy, ship, and transport them. Gold IRA custodial fees are typically higher than the typical IRA management fees.

Funding constraints

You are not permitted to transfer any precious metals you own into your Gold IRA.


Can you hold physical gold in a ROTH IRA? 

Specific gold, silver, and other precious metal bullion are exempt from the definition of “collectibles” as long as the appropriate non-bank trustee has the precious metals. So if you purchase gold in your Roth IRA, you can no longer keep the physical bars or coins.

Can I buy physical gold with 401k? 

A large majority of 401(k) plans prohibit individuals from making direct investments in precious metals. This means you won’t be able to add gold bullion or gold coins to your retirement plan portfolio.

What is a good amount of gold to own? 

One rule of thumb is to limit your gold holdings to no more than 10% of your total account value. Because gold has historically moved in the opposite direction of the US dollar, some investors use it as an inflation hedge.