The IRS has specific rules governing precious metals IRAs that every investor must understand to avoid penalties and keep their account in compliance. These rules cover what metals you can hold, how they must be stored, contribution limits, and distribution requirements.
The purity standards are the first set of rules. Gold held in an IRA must be at least 99.5 percent pure, with American Gold Eagles being the one statutory exception at 91.67 percent purity. Silver must be at least 99.9 percent pure. Platinum and palladium must each be at least 99.95 percent pure. Products must be manufactured by refiners or mints accredited by recognized industry bodies. Collectible coins, rare coins, and jewelry are explicitly prohibited regardless of their metal content.
Storage requirements are strict. All precious metals in an IRA must be stored at an IRS-approved third-party depository. You cannot store IRA metals at home, in a personal safe, or in a bank safe deposit box. Taking personal possession of the metals while they are in the IRA is treated as a distribution, triggering income taxes and potentially a 10 percent early withdrawal penalty if you are under 59 and a half.
Contribution limits follow the same rules as any IRA. For 2025, the annual limit is $7,000 for individuals under 50 and $8,000 for those 50 and older. These limits apply to the total across all IRA accounts, not per account. Rollovers from 401k plans and other retirement accounts are not subject to contribution limits.
The custodian requirement means you must use an IRS-approved custodian to administer the account. The custodian handles record-keeping, tax reporting, and ensures compliance with all IRS regulations. You cannot self-custody a precious metals IRA.
Distribution rules mirror standard IRA rules. Traditional precious metals IRAs require minimum distributions starting at age 73. Roth precious metals IRAs have no required minimum distributions during your lifetime. Early withdrawals before age 59 and a half trigger a 10 percent penalty plus applicable taxes.
Prohibited transactions apply to precious metals IRAs just as they do to any self-directed IRA. You cannot sell metals to your IRA from your personal collection, and you cannot buy metals from the IRA for personal use. Transactions with disqualified persons including family members are also prohibited. Violating these rules can disqualify the entire account.
