The four moving parts
- You — the account owner who decides what to hold.
- A custodian — an IRS-approved trustee that administers the self-directed IRA and handles paperwork and reporting.
- A dealer — the precious-metals company that sources your IRS-approved coins and bars.
- A depository — an insured, IRS-approved vault (e.g. Delaware Depository, Brink's, Loomis) that stores the metal in your account's name.
Step by step
1. Open the self-directed IRA
You open the account with a custodian who permits alternative assets. This is a standard IRA wrapper — the same contribution limits and rules apply.
2. Fund it
Most people fund a gold IRA by rolling over an existing 401(k) or IRA. A direct (trustee-to-trustee) transfer is not a taxable event when done correctly.
3. Buy IRS-approved metal
The IRS allows certain gold, silver, platinum, and palladium that meet minimum purity standards (e.g. 99.5% for gold) — such as American Gold Eagles and many bullion bars. Collectible / “numismatic” coins generally do not qualify, no matter how hard anyone sells them.
4. Store it properly
Your metal ships to an IRS-approved depository, held in the account's name. You can't keep IRA metal in a home safe — “home-storage IRA” pitches are a well-known compliance trap.
Taxes and distributions
A gold IRA follows the same tax rules as any IRA: traditional accounts grow tax-deferred and are taxed on withdrawal; Roth versions can grow tax-free if rules are met. At retirement you can take distributions in cash (the metal is sold) or, with some custodians, “in kind” by taking physical possession. Early-withdrawal penalties apply just as they would elsewhere.
What it costs
A gold IRA carries a setup fee, an annual custodian fee, and annual storage/insurance — plus the dealer's markup on the metal itself. We break the numbers down in gold IRA fees explained. When you're ready to compare providers, see our factual company reviews.