Precious Metals IRAs: How They Work And How To Open One In 2026

Precious metals IRAs are self-directed IRA accounts that hold physical gold, silver, platinum or palladium. A custodian manages the account and an approved depository stores your metal. You get the benefit of owning a tangible asset with all the same tax advantages as your other IRAs.

Below, you’ll see how the account works, which metals qualify, what it costs and how to open one.

Key takeaways

• Bullion has to meet minimum purity levels to qualify, such as 99.5% for gold and 99.9% for silver.
• For 2026, you can contribute up to $7,500, or $8,600 if you’re 50 or older, across all your Traditional and Roth IRAs combined.
• Opening the account and getting the metal to the depository takes about two weeks at Swiss America.

How does a precious metals IRA work?

A precious metals IRA works like any other IRA, except it’s self-directed, which means you choose the assets and can hold physical bullion. A standard IRA at a brokerage limits you to stocks, bonds, and funds.

Here’s who handles each part of the account:

• Custodian: Holds the account, keeps the records and handles IRS reporting.
• Dealer: Sells you the metal and helps with the IRA paperwork.
• Depository: Stores the metal for as long as it’s in your IRA.

Which metals can you hold in a precious metals IRA?

You can hold gold, silver, platinum and palladium, as long as the coins and bars meet the minimum fineness the tax code requires:

• Gold: 99.5%
• Silver: 99.9%
• Platinum: 99.95%
• Palladium: 99.95%

Popular eligible gold coins include the American Eagle, American Buffalo, Canadian Maple Leaf, Austrian Philharmonic and Australian Kangaroo. American Gold Eagles are 91.67% gold, but they qualify by law as an exception to the 99.5% rule. 

Bars from accredited refiners or national mints also qualify, such as PAMP Suisse or Valcambi.

Some gold and silver doesn’t qualify:

• Most numismatic (collectible) coins
• South African Krugerrands
• Pre-1933 US gold coins
• 90% US silver coins

Where is the metal stored?

Your metal is kept at an approved depository, such as the Delaware Depository, and you can choose between two types of storage:

• Commingled: Your metal is stored alongside other clients’ metal of the same type, and you get back equivalent coins or bars. 
• Segregated: Your coins and bars are kept apart from everyone else’s, and you get back the exact pieces you bought.

Either way, the depository insures the metal while it holds it, and that cost is part of the storage fee.

Types of precious metals IRAs and how they’re taxed

You can open a precious metals IRA as any of the four standard IRA types:

• Traditional: You fund it with pretax dollars, may get a deduction, and pay income tax when you withdraw.
• Roth: You fund it with after-tax dollars, and qualified withdrawals are tax-free.
• SEP: Built for self-employed people and small-business owners.
• SIMPLE: Offered through smaller employers.

For 2026, you can contribute up to $7,500, or $8,600 if you’re 50 or older. That’s the combined limit for all your Traditional and Roth IRAs. SEP and SIMPLE accounts have their own limits, and the IRS has set the SIMPLE limit at $17,000 for 2026.

You can take penalty-free withdrawals from age 59 1/2, either as cash or as the metal itself. If you withdraw before then, the IRS usually adds a 10% penalty to the income tax you owe. Traditional, SEP and SIMPLE accounts have required minimum distributions from age 73, and a Roth has none while you’re alive.

What does a precious metals IRA cost?

Beyond the metal itself, a precious metals IRA has fees to consider:

• Setup fee: A one-time charge to open the self-directed account.
• Annual maintenance fee: The custodian’s yearly charge for recordkeeping and IRS reporting.
• Storage fee: The depository’s yearly charge to hold and insure your metal.
• Dealer premium: The amount above the spot price you pay for coins or bars.

The Swiss America team often works with Gold Star Trust, where the fees include $50 setup, $90 yearly maintenance and commingled storage at $125 per year. That comes to $265 the first year and $215 a year after that.  

How to open a precious metals IRA

Here’s how the process works, from choosing a dealer to the metal arriving at the depository:

1. Choose a dealer: Look for a dealer with a long track record, experience with IRA paperwork and a buyback policy.
2. Open the self-directed account: Fill out the custodian’s application and send a copy of your ID.
3. Fund the account: The simplest way is a transfer from another IRA or a direct rollover from a 401(k) or other employer plan. You can also add new money up to the yearly limit.
4. Choose your metals: Pick your coins or bars with the dealer, then sign the custodian’s buy direction form so the custodian can wire the funds to the dealer.
5. Ship to the depository: The dealer ships the metal to the depository, which checks it against the order and records it in your account.

At Swiss America, the whole process takes about two weeks on average. We also cover more details on the steps on our podcast:

Final thoughts on precious metals IRAs

Most of the work in opening a precious metals IRA is deciding which metals to hold and how to fund the account, and the custodian, dealer and depository handle the rest. If you’d like help choosing between gold, silver, platinum and palladium for your account, connect with the Swiss America team.

Precious metals IRAs: FAQs

What are the IRS rules for a precious metals IRA?

The main IRS rules are:

• The account has to be self-directed and held by an approved custodian.
• The metal has to meet the purity minimums, and collectible coins don’t qualify.
• The metal stays at an approved depository, never at your home.
• Taking possession of the metal counts as a distribution.
• The standard IRA contribution limits and withdrawal rules apply.

Can you hold platinum in an IRA?

Yes. Eligible platinum coins include the American Platinum Eagle, Canadian Platinum Maple Leaf, Australian Platinum Koala and Isle of Man Noble, and platinum bars from accredited refiners qualify too.

Can you hold precious metals in a Roth IRA?

Yes. With a Roth precious metals IRA, withdrawals are tax-free once you’re 59 1/2 and you’ve had a Roth IRA for at least five years. 

To contribute, your income has to be under the IRS limit, which for 2026 phases out between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for married couples filing jointly.

What are the rules for a silver IRA?

Eligible coins for a silver IRA include the American Silver Eagle, Canadian Silver Maple Leaf, Austrian Silver Philharmonic, Australian Kookaburra and Mexican Libertad.

Is a precious metals IRA a good investment?

For many investors, the main reason to open one is diversification. Gold and silver tend to move separately from the stock market, and physical metal doesn’t depend on any company or bank to hold its value. 

The tradeoffs are that the metal pays no interest or dividends, and storage and custody cost more than a standard IRA.

The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.