Understanding precious metals IRAs

A precious metals IRA is a self-directed individual retirement account that holds physical gold, silver, platinum or palladium instead of, or alongside, paper assets.

Eligible products

The IRS allows bullion that meets minimum fineness standards — generally .995 for gold — plus certain coins such as the American Gold Eagle. Most collectible and rare coins are not allowed.

Custodian and depository

The account must be administered by an IRS-approved custodian, and the metal held in an approved depository. Storing IRA metal at home is generally treated as a distribution and can trigger taxes and penalties.

Fees to ask about

Expect a setup fee, an annual custodian fee, annual storage and insurance fees, and the dealer premium over spot on every purchase. Ask for all of them in writing, and ask what the buy-back price would be.

Rollovers

Funds can usually be moved from a 401(k) or another IRA through a direct transfer. Indirect rollovers have a 60-day window and frequency limits, so consult a tax professional first.

Choosing a provider

Look for transparent pricing, no high-pressure sales and a verifiable complaint history. Independently check applicable licenses and the scope of any credential; a directory placement or membership is not proof of accreditation.