Precious Metals IRA: rules, costs and examples

Overview

A precious metals IRA can hold certain permitted metals within an IRA custody structure. Gold, silver, platinum, and palladium do not have identical economic drivers. Owning several metals also does not automatically provide broad retirement diversification.

Who is this for?

Start by comparing your existing exposures and need for income. Metal produces no contractual yield. A retiree financing living expenses may need a separate liquid reserve. If a seller recommends moving an entire workplace retirement account into metals, obtain independent advice before concentrating assets.

Tax treatment

The account’s Traditional or Roth rules govern federal tax treatment. Specific eligibility and custody requirements apply to metal products. The permitted exceptions to collectible restrictions should be checked for the exact product, not generalized to every item produced by a mint or refinery.

Contribution rules

The metal mix does not change contribution limits. A qualified transfer may move more than an annual contribution cap, but that distinction does not establish suitability or investment safety. Ask for a step-by-step transaction statement separating the transfer from the dealer’s sale.

Investments and costs

Compare custody and depository roles, product eligibility, dealer spreads, valuation methods, insurance, and dispute procedures. A promotional “free storage” period can coexist with a large initial markup. Calculate costs over the intended holding period and include the likely exit transaction.

Withdrawals and restrictions

Required distributions may require selling assets or distributing metal in kind. Marketability matters at the time of withdrawal. Confirm whether the provider supports partial sales and how it establishes the value reported on an in-kind distribution.

Worked example and decision checklist

Decision worksheet: record proposed portfolio percentage, total entry cost, annual charges, estimated sale spread, time to sell, and the source of cash for required withdrawals. Compare this against a simpler alternative exposure and your current portfolio. Reject a proposal whose justification depends only on a forecast that one asset must rise.

Sources and scope

• Prohibited IRA transactions — IRS
• Self-directed IRA fraud risks — Investor.gov

Updated October 21, 2026. Prepared with AI assistance; no independent professional review is claimed. Examples are hypothetical. Editorial policy and corrections.