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Precious metals IRAs: how the account actually works
A precious metals IRA is an ordinary self-directed IRA whose holdings are bullion that clears the collectibles exception in 26 U.S.C. § 408(m), with a custodian holding the account, a depository holding the metal, and a dealer — us — sourcing and pricing it.
What people ask us about precious metals iras
- ·how a gold IRA works
- ·how to roll a 401(k) into gold without a tax event
- ·what fees a gold IRA charges
- ·whether you can store IRA gold at home
- ·which custodians actually hold metals
Three parties, three jobs
The confusion in this corner of the market is almost always about who does what. The custodian is the IRS-recognized trustee that holds the account, files what has to be filed, and takes title to the assets on the account's behalf. The depository is the insured vault that physically holds the metal. The dealer sources, prices and delivers the metal to that vault. Capstone is only the third of those.
We work with Preferred Trust Company and GoldStar Trust Company because they do custody as their business, they are answerable for it, and they have no incentive tied to which product you buy. A firm that claims to be your dealer, your custodian and your depository at once has removed the checks that protect you.
Transfer versus rollover — the distinction that costs money
A direct trustee-to-trustee transfer moves money between custodians without the funds ever passing through your hands. It is not a reportable rollover, there is no 60-day clock, and there is no per-year limit. This is the route we recommend for nearly every case, because there is almost nothing to get wrong.
An indirect rollover puts a check in your hands and gives you 60 days to redeposit it. The IRS applies a one-rollover-per-twelve-months limit across all of a taxpayer's IRAs — not per account — and missing the window turns the whole amount into a taxable distribution. If someone tells you to take the check, ask why.
What the account may hold
Bullion that clears the fineness exception, held by the trustee. That is the whole test, and both halves matter: a qualifying coin held at your house does not satisfy it, and a collectible coin held at a depository does not either. The IRS has explicitly declined to treat the exception as broad.
Beyond metals, a self-directed IRA at these custodians can hold a much wider range than most people expect — including whole brokerage accounts, real estate, private notes and digital assets moved into custody. When a client's goal is consolidation rather than metals alone, that is a real conversation to have with the custodian and their own adviser.
What it costs, stated plainly
There are three cost layers and they belong to three different companies: the custodian's setup and annual administration fee, the depository's storage and insurance fee, and the dealer's premium on the metal. Anyone quoting you one number for a gold IRA is bundling somebody else's fee schedule into their own.
Ask each party for their own number. Ask us for the premium in dollars per ounce and the buy-back we would offer today. That is the honest way to compare firms, and it is why our catalog quotes by phone rather than printing prices that would be stale before you called.
The facts, with their sources
An IRA's purchase of a collectible is treated as a distribution, with a narrow exception for qualifying bullion in a trustee's possession.1
26 U.S.C. § 408(m) is the operative statute: it sets both the fineness condition and the custody condition.
Indirect IRA-to-IRA rollovers are limited to one in any twelve-month period, applied across all of a taxpayer's IRAs.2,4
Announcement 2014-32 confirmed the aggregate reading; direct trustee-to-trustee transfers are not subject to the limit.
Rollover mechanics, including the 60-day redeposit window, are set out by the IRS rather than by any dealer.3
The IRS rollover guidance is the authority to check any dealer's process against — including ours.
Contribution eligibility and limits for the account are governed by Publication 590-A.5
Holding metal changes nothing about who may contribute or how much; it changes only what the account owns.
Distributions, required minimum distributions and their tax treatment are governed by Publication 590-B.6
This matters for metals specifically, because an RMD may require selling metal or taking an in-kind distribution.
IRA-eligible U.S. bullion coins exist because Congress authorized those coin programs by statute.7
31 U.S.C. § 5112 fixes their weight and fineness, which is how eligibility can be verified rather than asserted.
Terms, defined
- Custodian / trustee
- The IRS-recognized institution that holds the IRA and takes title to its assets. Not a dealer.
- Depository
- The insured third-party vault that physically holds the account's metal.
- Direct transfer
- Custodian-to-custodian movement of funds. No 60-day clock, no annual limit.
- Indirect rollover
- Funds paid to you and redeposited within 60 days. Limited to one per twelve months per taxpayer.
- In-kind distribution
- Taking the metal itself out of the account rather than selling it for cash.
Transfer versus indirect rollover
| Feature | Direct transfer | Indirect rollover |
|---|---|---|
| Who touches the money | Custodian to custodian only | Paid to you, then redeposited |
| Deadline | None to miss | 60 days from receipt |
| Frequency limit | No per-year limit | One per twelve months across all your IRAs |
| Failure mode | Delay | The full amount can become a taxable distribution |
The order of operations
- 1Talk through the goal firstWhat the money is for, when it is needed, and whether metals belong in the plan at all. Sometimes the answer is no.
- 2Open the self-directed IRAWith Preferred Trust or GoldStar. Their paperwork, their fee schedule, their account.
- 3Fund by direct transferCustodian to custodian, so there is no 60-day clock and no per-year limit to trip over.
- 4Get a decomposed quoteMetal and premium separately, in dollars per ounce, plus the buy-back we would honor today.
- 5Custodian settles and the depository receivesThe custodian pays us and the metal is delivered into the vault under the account's title. It never comes to you.
- 6Keep the statementsThe custodian reports holdings; the depository confirms them. Two independent records is the point of the structure.
What can go wrong
Home-storage IRA schemes
The exception is written around trustee possession. Structures that route IRA metal to a home safe put the account's treatment at issue.
The 60-day trap
An indirect rollover that misses the window can become fully taxable. This is avoidable by using a direct transfer.
Bundled fees
Custodian, depository and dealer costs belong to three companies. A single blended figure hides which one is expensive.
Collectible upsells inside an IRA
The highest-margin products in this industry are the ones the statute excludes. If rarity enters the pitch, stop.
RMD liquidity
A required distribution may force a sale or an in-kind transfer at a moment you did not choose.
What the industry gets wrong
"You can hold your IRA's gold at home with an LLC."
The statutory exception centers on a trustee holding the bullion. Treat home-storage structures as a risk to the account, not a feature.
"A rollover is a rollover."
A direct trustee-to-trustee transfer avoids the 60-day clock and the annual limit entirely. Indirect rollovers carry both.
"The dealer is my custodian."
We are a dealer. The custodian is an independent institution, and that separation is what protects the account.
"A gold IRA has one flat fee."
It has at least three costs from three companies. Ask each one separately.
Questions people actually ask
How does a gold IRA work?
You open a self-directed IRA with a custodian, fund it — normally by direct transfer from an existing retirement account — and instruct the custodian to buy qualifying bullion. The custodian pays the dealer and the metal ships to an insured depository under the account's title. You never take possession while it is inside the account.
Can I roll over a 401(k) without a tax event?
A direct trustee-to-trustee transfer moves the funds without passing through your hands, which is the route that avoids the 60-day clock and the annual rollover limit. Your plan administrator and the receiving custodian handle the mechanics; we do not touch the money. Your own tax adviser should confirm the treatment for your situation.
Which custodians do you work with?
Preferred Trust Company and GoldStar Trust Company. They hold the account and take title to the metal; we source and price it. We keep those roles separate on purpose.
What does a precious metals IRA cost?
Three separate costs: the custodian's setup and annual administration, the depository's storage and insurance, and our premium on the metal. Ask each party for their own figure. We will give you the premium in dollars per ounce and the buy-back we would honor today.
Can I store the metal at home?
Not while it is IRA property. The statutory exception is built around a trustee holding the bullion. Metal you own personally, outside a retirement account, is a different matter entirely.
What happens when I have to take a required distribution?
You either sell metal inside the account to raise cash or take an in-kind distribution of the metal itself. Both have tax consequences governed by Publication 590-B, and both are worth planning a year ahead rather than in December. Your adviser should run the numbers for your case.
Can a self-directed IRA hold anything besides metals?
At these custodians, considerably more — brokerage holdings, real estate, private notes and digital assets moved into custody. If your goal is consolidating scattered accounts rather than buying metal, say so; that is a different and often better conversation.
Go deeper
The account
Funding it
Rules, costs and cautions
- Gold IRA rules What the statute and publications require.
- Gold IRA fees The three cost layers, separated.
- Gold IRA taxes How the wrapper is taxed.
- Gold IRA custodian What a custodian is responsible for.
- Gold IRA minimum investment What sizes make sense, and why.
- Gold IRA pros and cons Both columns, honestly.
- Gold IRA scams The pitches that cost people money.
Sources
- 1. Rollovers of retirement plan and IRA distributionsInternal Revenue Service · Primary / governmentView the source
- 2. Announcement 2014-32 — Application of One-Per-Year Limit on IRA RolloversInternal Revenue Service · Primary / governmentView the source
- 3. Publication 590-A — Contributions to Individual Retirement Arrangements (IRAs)Internal Revenue Service · Primary / governmentView the source
- 4. Publication 590-B — Distributions from Individual Retirement Arrangements (IRAs)Internal Revenue Service · Primary / governmentView the source
- 5. 26 U.S.C. § 408(m) — Investment in collectibles treated as distributionsLegal Information Institute, Cornell Law School · Primary / governmentView the source
- 6. 26 U.S.C. § 408(d)(3) — Rollover contributions and the one-year limitationLegal Information Institute, Cornell Law School · Primary / governmentView the source
- 7. 31 U.S.C. § 5112 — Denominations, specifications, and design of coinsLegal Information Institute, Cornell Law School · Primary / governmentView the source
Written by Travis Bugli, Chief Executive Officer and licensed agent, Capstone Metals. Reviewed by Mark Bugli, Senior Advisory Partner, licensed since 1970. Last reviewed 2026-09-02. This page describes rules and market mechanics; it is not tax or investment advice for your situation.
The premium is stated in writing, every time
Every listing is priced against live spot with the premium disclosed before you commit, and we quote a live buy-back on anything we sold you. A just weight is not a courtesy; it is a command.
“A false balance is abomination to the Lord: but a just weight is his delight.”
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Talk precious metals iras with a licensed agent
Call (800) 200-9553 and we will quote the metal and the premium separately, and tell you the buy-back before you buy.