Yes, you can buy precious metals in an IRA, but you need the right type of account and the metals must meet specific IRS requirements. A standard IRA at a traditional brokerage like Fidelity, Vanguard, or Schwab does not support physical precious metals purchases. To hold actual gold, silver, platinum, or palladium inside your IRA, you need a self-directed IRA with a custodian that specializes in precious metals.
The process starts with choosing a precious metals IRA provider. Companies in this space help you set up a self-directed IRA, fund it, purchase approved metals, and arrange storage at an IRS-approved depository. You can open the account as either a traditional or Roth IRA, giving you the choice between tax-deferred growth and tax-free growth.
Funding the account can happen through direct contributions up to the annual IRS limit, or through rollovers and transfers from existing retirement accounts like a 401k, traditional IRA, or 403b. Rollovers are the most common funding method because they allow you to move larger sums without being limited by annual contribution caps.
The IRS has strict purity requirements for metals held in an IRA. Gold must be at least 99.5 percent pure, with an exception for American Gold Eagle coins. Silver must be at least 99.9 percent pure. Platinum and palladium must be at least 99.95 percent pure. Common eligible products include American Gold Eagles, American Silver Eagles, Canadian Maple Leafs, and approved bars from recognized refiners.
Once purchased, your metals are shipped to and stored at an approved depository. You cannot take personal possession of the metals while they are in the IRA. The depository charges annual storage fees, and your custodian charges administrative fees. These costs vary by provider and should be compared carefully before selecting one.
You can buy and sell metals within the IRA without triggering taxes, just like trading stocks inside a regular IRA. When you take distributions in retirement, you can either sell the metals for cash or, in some cases, take an in-kind distribution of the physical metal, though this is a taxable event.
