Gold IRA investors encounter dozens of technical terms across IRS publications, custodian agreements, and dealer documents. This A-Z reference defines all 100 terms you will see, from basic bullion vocabulary to custodian mechanics, IRS purity standards, and tax rules. Each entry links to its authoritative source so you can verify independently before making any decision.
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Quick Answer
100 gold IRA terms across 23 letters, each linked to its authoritative IRS or government source
This A-Z reference defines the 100 technical terms a gold IRA investor will see in IRS publications, custodian agreements, and dealer paperwork, organized across 23 letters of the alphabet. Each entry covers a single concept (purity standards, allocated versus commingled storage, prohibited transactions, RMD rules, contribution limits, custodian mechanics) and links to its primary source, such as IRS Publication 590-A, 590-B, or the relevant Internal Revenue Code section, so you can verify every definition independently.
A
- Allocated Storage
- Physical metals in an IRA depository that are held under your name and identified by specific serial numbers and weights. Your bars or coins are not pooled with other clients’ metals. Storage fees are typically higher than commingled storage. IRS regulations require metals to be at an approved third-party depository, but do not mandate allocated vs. commingled; that choice is between you and your custodian.
- American Gold Buffalo
- A 24-karat (0.9999 fine) gold bullion coin produced by the U.S. Mint since 2006, issued in 1 oz only. Meets the IRS 0.995 fineness threshold for gold IRA inclusion. Face value: $50.
- American Gold Eagle (AGE)
- A 22-karat (0.9167 fine) gold coin struck by the U.S. Mint, containing exactly 1 troy oz of gold alloyed with silver and copper. Congress explicitly exempted the AGE from the standard 0.995 fineness requirement via the Taxpayer Relief Act of 1997. Available in 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz sizes. See IRS Publication 590-B.
- Annual Contribution Limit
- The IRS cap on total new money added to all of your IRAs combined per tax year. For 2024: $7,000 (under 50) or $8,000 (50 and older, with catch-up). A gold IRA counts toward this combined limit. Source: IRS Publication 590-A.
- Approved Custodian
- A bank, trust company, or IRS-approved non-bank trustee authorized to administer self-directed IRAs holding physical metals. Every gold IRA requires one. You cannot personally hold IRA metals without triggering a taxable distribution. Source: IRS approved non-bank trustee list.
- Approved Depository
- A third-party storage facility vetted to hold IRA precious metals. Examples include the Delaware Depository, Brinks Global Services, and International Depository Services (IDS). The custodian typically selects from a list of approved depositories that maintain insurance, 24-hour monitoring, and periodic audits. Source: IRC Section 408(m).
- Assay Certificate
- A document from an independent laboratory or mint certifying the purity, weight, and serial number of a specific bar or coin. Major refiners on the LBMA Good Delivery list produce self-certified bars recognized without separate assay for IRA purposes.
B
- Backdoor Roth IRA
- A two-step strategy for high-income earners who exceed the direct Roth IRA contribution income limits: make a non-deductible traditional IRA contribution, then convert it to Roth. The pro-rata rule may apply if you hold other pre-tax IRA balances. Consult your tax advisor for your specific situation.
- Bid-Ask Spread
- The difference between the price a dealer will pay to buy a metal (bid) and the price to sell it (ask). A tighter spread means more liquid market. The spread is a real transaction cost on top of any premium over spot price. Larger for numismatic coins than standard bullion.
- Bullion
- Refined precious metal in coin or bar form, valued primarily by weight and purity rather than collectibility. IRS Publication 590-B distinguishes bullion (generally IRA-eligible) from collectibles (generally not). The term derives from Old French for “melt.”
- Buyback Program
- A dealer policy to repurchase metals previously sold. Not all dealers offer buybacks, and purchase prices may be below current spot. Augusta Precious Metals offers a buyback program for clients looking to liquidate IRA metals. Always review buyback terms before opening an account.
C
- Canadian Gold Maple Leaf
- A 24-karat (0.9999 fine) gold bullion coin issued annually by the Royal Canadian Mint since 1979. Among the purest circulating gold coins. IRA-eligible under the 0.995 fineness threshold. Available in 1 oz, 1/2 oz, 1/4 oz, 1/10 oz, and 1/20 oz.
- Catch-Up Contribution
- An additional annual IRA contribution available to taxpayers age 50 and older. For 2024: $1,000 over the standard $7,000 limit, for an $8,000 total. SECURE 2.0 (2022) modified catch-up rules for 401k plans separately. Source: IRS Publication 590-A.
- CFTC
- The Commodity Futures Trading Commission. The U.S. federal regulator for commodity futures and swaps markets, including gold and silver futures traded on the COMEX. The CFTC does not regulate physical metals dealers directly but does regulate precious metals futures and options. Source: cftc.gov.
- Collectible
- Under IRC Section 408(m), most collectibles are prohibited IRA investments: art, rugs, antiques, gems, stamps, coins beyond bullion exceptions, and certain metals. Purchasing a prohibited collectible inside an IRA triggers a deemed distribution equal to cost. The key distinction: a coin priced far above its metal content is generally a collectible. Source: IRS Publication 590-B.
- COMEX
- The Commodity Exchange, a division of CME Group, where gold and silver futures contracts are traded in New York. COMEX December gold futures serve as the global institutional pricing benchmark. Retail spot prices for physical gold track COMEX futures prices plus premiums for handling, shipping, and dealer markup.
- Commingled Storage
- Precious metals stored in a shared vault tracked by weight and type, not by individual serial number. Also called pooled or unallocated storage. Your custodian documents your proportionate ownership. Lower storage fees than segregated storage. Upon distribution you receive metals of equivalent weight and purity, not your original specific pieces.
- Custodian
- The IRS-approved institution (bank, trust company, or non-bank trustee) that holds legal title to IRA assets, handles record-keeping, and files IRS Forms 5498 and 1099-R. For physical gold IRAs, the custodian also coordinates transactions with the approved depository. Common custodians include Equity Trust Company, STRATA Trust, and GoldStar Trust. Source: IRS.gov.
- Custodian Fee
- Annual or per-transaction charges from the IRA custodian for account administration. Fees range from flat annual rates ($100-$300) to percentage-of-assets models. Always request a complete fee schedule, separate from storage fees, before opening an account.
D
- Dealer
- A company or individual licensed to buy and sell precious metals. In the gold IRA process, the dealer is distinct from the custodian: the dealer sells you the gold, the custodian holds it in your IRA. You never take physical possession during the transaction. State-level regulation applies in most U.S. jurisdictions.
- Depository
- A third-party storage facility approved to hold IRA precious metals on behalf of the custodian. IRS rules require metals to be held at an approved depository, not by the IRA owner personally. See also: Approved Depository.
- Direct Rollover
- Moving retirement assets from a qualified plan directly to an IRA, with funds going institution-to-institution and never passing through the account holder’s hands. No 20% mandatory tax withholding. No 60-day deadline. The preferred method for funding a gold IRA from a 401k.
- Distribution
- Any withdrawal of assets from an IRA. Traditional IRA distributions are taxed as ordinary income. Roth IRA qualified distributions are tax-free. A gold IRA distribution can be taken in cash (custodian sells the metal) or in-kind (you receive the physical metals). Source: IRS Publication 590-B.
E
- Early Withdrawal Penalty
- A 10% additional tax on distributions from traditional IRAs taken before age 59½. Exceptions include disability, substantially equal periodic payments (Rule 72(t)), first-time home purchase (up to $10,000 lifetime), and others. Does not reduce the income tax owed on the distribution. Source: IRC Section 72(t).
- Eligible Rollover Distribution
- A distribution from a 401k, 403(b), or 457(b) plan that can be rolled over to another qualified plan or IRA without immediate tax. Most distributions qualify except required minimum distributions (RMDs), hardship distributions, and substantially equal periodic payment installments. Source: IRS Publication 575.
- Equity Trust Company
- One of the largest self-directed IRA custodians in the United States, headquartered in Westlake, Ohio. Equity Trust administers accounts holding physical gold and other alternative assets. Augusta Precious Metals uses Equity Trust as its recommended custodian. Source: equitytrustcompany.com.
F
- Fair Market Value (FMV)
- The price at which an asset would exchange between a willing buyer and willing seller, neither under compulsion. IRA custodians must report FMV annually on Form 5498. For physical gold, FMV is typically spot price multiplied by the ounce weight of holdings. Source: IRS Form 5498 instructions.
- Fineness
- Precious metal purity measured in parts per thousand. 0.9999 fine gold contains 999.9 grams of gold per kilogram. Also expressed as a decimal or percentage. The IRS requires IRA gold to be at least 0.995 fine, with the specific exception of American Gold Eagles (0.9167 fine).
- FINRA
- The Financial Industry Regulatory Authority, a non-government self-regulator overseeing broker-dealers. FINRA does not directly regulate physical metals dealers, but it issues investor alerts on precious metals fraud and maintains BrokerCheck to verify financial professionals. Source: finra.org.
- Form 1099-R
- IRS information return filed by your custodian reporting distributions from your IRA. Sent to you by January 31 for distributions the prior year. Box 7 distribution code indicates whether the 10% early withdrawal penalty applies. Source: IRS.gov.
- Form 5498
- IRS information return filed by the custodian reporting IRA contributions, rollovers, and fair market value each year. Due May 31. You receive a copy for your records. The FMV on this form is what the IRS uses in tax basis calculations. Source: IRS.gov.
- Fractional Gold Coin
- A gold bullion coin smaller than 1 troy oz, such as 1/2 oz, 1/4 oz, or 1/10 oz. American Gold Eagles, Canadian Maple Leafs, and Austrian Philharmonics are all issued in fractional sizes. Fractional coins carry higher per-ounce premiums than full-ounce coins because minting costs are relatively fixed per coin.
G
- Gold IRA
- A self-directed individual retirement account authorized to hold IRS-approved physical gold, silver, platinum, and palladium. Standard brokerage IRAs allow only stocks, bonds, and funds. A gold IRA requires a specialized custodian and an IRS-approved depository. The Taxpayer Relief Act of 1997 opened IRAs to physical precious metals.
- Gold-to-Silver Ratio
- The number of silver ounces required to buy one ounce of gold at current prices. Calculated by dividing the gold spot price by the silver spot price. The ratio has historically ranged from below 20 to above 120. Investors watch it when comparing relative value between the two metals; it does not indicate the future direction of either price.
- Gram
- A metric unit of weight equal to 0.0321507 troy oz. Smaller gold bars (1g, 5g, 10g) are sometimes priced in grams. For IRA calculations, weights are converted to troy ounces. One kilo bar = 1,000 grams = 32.1507 troy oz.
H
- Hallmark
- A mark stamped on precious metal by a mint or refiner certifying purity, weight, and serial number. LBMA Good Delivery bars carry specific required hallmarks from approved refiners. For IRA eligibility, a hallmark alone is not sufficient; the refiner must be on an approved list.
- Hard Asset
- A tangible physical asset with intrinsic value, as opposed to a financial claim like a stock or bond. Gold is the most common example. The term is used in financial planning discussions but is not a legal or IRS category.
I
- In-Kind Distribution
- Receiving physical metals from your IRA rather than cash. The custodian ships the actual coins or bars to you. The fair market value of those metals on the distribution date counts as ordinary income (traditional IRA). Available as an option at age 59½ or older for qualified distributions.
- Indirect Rollover
- Moving IRA funds by receiving them yourself first, then depositing them in a new account within 60 days. For plan-to-IRA rollovers, the plan withholds 20% for taxes, which you must replenish from your own funds to avoid a partial taxable distribution. The IRS allows only one indirect rollover per 12-month period across all IRAs. Source: IRS Publication 590-B.
- Individual Retirement Account (IRA)
- A personal retirement savings account with tax advantages under IRC Section 408. Types include traditional (pre-tax, tax-deferred growth), Roth (after-tax, tax-free qualified growth), SEP, and SIMPLE. A gold IRA is a subcategory of traditional or Roth; it is not a separate IRA type under the tax code.
- Inherited IRA
- An IRA received as a beneficiary after the original owner’s death. The SECURE Act (2019) and SECURE 2.0 (2022) significantly changed distribution rules. Non-spouse beneficiaries generally must distribute the full balance within 10 years of the original owner’s death under current rules. Consult your tax advisor, as rules remain subject to ongoing IRS guidance.
- IRA Transfer
- Moving assets directly between two custodians holding the same IRA type, with no money passing through your hands. Not subject to the once-per-year rollover rule. No 60-day deadline. The most common way to move an existing IRA to a gold IRA custodian.
- IRS Publication 590-A
- The IRS guide covering IRA contributions, eligibility rules, and deductibility thresholds. Free at IRS.gov. Updated annually to reflect current contribution limits.
- IRS Publication 590-B
- The IRS guide covering IRA distributions, including required minimum distributions, early withdrawal rules, and the specific list of IRA-eligible precious metals and their purity thresholds. The definitive tax reference for gold IRA investors. Free at IRS.gov.
- IRS-Approved Precious Metals
- Under IRC Section 408(m)(3), a gold IRA may hold gold (0.995 fine minimum; exception for AGE), silver (0.999), platinum (0.9995), and palladium (0.9995). The metal must be produced by a national government mint or an accredited refiner meeting NYMEX/COMEX or LBMA standards. Source: IRC Section 408(m)(3).
J
- Joint Life Expectancy Table
- An IRS actuarial table used to calculate required minimum distributions when the sole beneficiary is a spouse more than 10 years younger than the IRA owner. Using this table produces a longer distribution period and smaller annual RMDs than the Uniform Lifetime Table. Source: IRS Publication 590-B, Appendix B.
K
- Karat
- Traditional jewelry measure of gold purity expressed in 24 parts. 24 karat = 99.9% gold. 18 karat = 75% gold. 14 karat = 58.3% gold. For IRA eligibility, the fineness measure is more precise: the minimum is 0.995 (roughly 23.88 karat). Standard jewelry gold (14k or 18k) is not IRA-eligible.
- Kilo Bar
- A gold or silver bar weighing 1 kilogram (32.1507 troy oz). Common in institutional and wholesale markets. IRA-eligible from an approved refiner meeting the 0.995 fineness minimum (gold) or 0.999 (silver). Lower per-ounce premium than 1-oz coins but less flexible for individual distributions.
- Krugerrand
- A 22-karat (0.9167 fine) South African gold bullion coin first minted in 1967, one of the world’s most traded coins. The Krugerrand does not hold a specific Congressional exemption in the U.S. tax code (unlike the AGE) and does not meet the 0.995 fineness standard. Most custodians do not accept Krugerrands for IRA accounts.
L
- LBMA
- The London Bullion Market Association. The international trade association for the wholesale over-the-counter gold and silver market based in London. The LBMA sets the Good Delivery standards for large gold and silver bars and publishes the LBMA Gold Price benchmark twice daily. Source: lbma.org.uk.
- LBMA Gold Price
- Formerly called the London Gold Fix. An electronic auction-based price published by the LBMA at 10:30 AM and 3:00 PM London time each business day, administered by ICE Benchmark Administration. The benchmark reference rate for large institutional gold transactions globally. Source: lbma.org.uk/prices.
- LBMA Good Delivery Bar
- The de facto global standard for large gold and silver bars traded professionally. A Good Delivery gold bar weighs 350-430 troy oz (roughly 10-13 kg), is at least 99.5% pure, and bears the hallmark of a refiner on the LBMA Good Delivery List. These bars are IRA-eligible due to their purity and approved-manufacturer status.
- Liquidity
- The ease of converting an asset to cash at or near market value without significant price impact. Physical gold bullion (Eagles, Maple Leafs) is more liquid than real estate but less liquid than publicly traded stocks. IRA metals must first be sold by the custodian or taken in-kind before you access cash.
M
- Medallion
- A coin-shaped metal piece struck by a private company rather than a national mint, typically commemorative. Medallions lack legal-tender status. Even if made of pure gold, most custodians treat medallions as non-IRA-eligible because they do not meet the government-mint or accredited-manufacturer requirement. Confirm with your custodian before any purchase.
- Minimum Investment
- The minimum dollar amount required to open an account or make a purchase with a given gold IRA company. As publicly stated on company websites: Augusta Precious Metals requires $50,000 in eligible retirement funds; Birch Gold Group requires $10,000; Noble Gold Investments requires $20,000.
- Mint Mark
- A letter or symbol stamped on a coin identifying the production facility. For example, “W” on a U.S. coin indicates the West Point Mint. Mint marks affect collectibility for numismatists. For IRA eligibility, the issuing authority and metal purity matter far more than the specific mint mark.
- Modified Adjusted Gross Income (MAGI)
- Adjusted gross income with certain deductions added back, used by the IRS to determine Roth IRA contribution eligibility and traditional IRA deductibility. For 2024, the Roth IRA phase-out begins at $146,000 (single) and $230,000 (married filing jointly). Source: IRS Publication 590-A.
N
- Numismatic Coin
- A coin valued significantly above its metal content because of rarity, historical significance, condition grade, or collector demand. Numismatic coins are generally treated as collectibles under IRC Section 408(m) and are prohibited IRA investments. The premium above melt value is the numismatic premium, which can be substantial for rare or high-grade specimens.
- Numismatic Premium
- The dollar amount paid above a coin’s intrinsic metal (melt) value, driven by collectibility factors. A coin with $2,000 in gold content selling for $2,800 carries an $800 numismatic premium. High numismatic premiums raise two IRA concerns: possible collectible classification and the risk that premiums are not recoverable upon sale.
O
- One-Rollover-Per-Year Rule
- An IRS limitation allowing only one IRA-to-IRA indirect rollover per 12-month period, counted across all your IRAs combined (clarified in Bobrow v. Commissioner, 2014, and IRS Announcement 2014-15). Direct rollovers and trustee-to-trustee transfers are not subject to this limit. Violating the rule makes the second rollover a taxable distribution. Source: IRS Publication 590-B.
- Over-the-Counter (OTC) Market
- A decentralized trading market where transactions occur directly between buyer and seller outside formal exchanges. The London wholesale gold market (LBMA members) is primarily OTC. Retail purchases of physical gold for IRAs also occur in the OTC market between investors and dealers.
P
- Palladium
- A platinum-group metal (symbol Pd) eligible for IRA inclusion at 0.9995 fineness minimum, produced by an approved source. Palladium has major industrial uses in catalytic converters and electronics. Its IRA eligibility was established by the Taxpayer Relief Act of 1997 alongside platinum.
- Perth Mint
- The official gold and silver mint of Western Australia, a statutory authority of the Western Australian Government. The Perth Mint issues the Australian Gold Kangaroo coin (0.9999 fine), IRA-eligible. Source: perthmint.com. Confirm IRA custodian acceptance of Perth Mint Certificates before treating them as IRA assets.
- Philharmonic (Austrian Gold Philharmonic)
- A 24-karat (0.9999 fine) gold bullion coin issued by the Austrian Mint since 1989, named after the Vienna Philharmonic Orchestra. Available in 1 oz, 1/2 oz, 1/4 oz, 1/10 oz, and 1/25 oz. IRA-eligible. Face value denominated in euros. Source: Austrian Mint.
- Physical Gold
- Gold in tangible form: coins, bars, or rounds, as opposed to paper representations such as ETFs, futures, or mining stocks. IRS rules require physical gold inside an IRA to be stored at an approved depository. Storing IRA gold at home or in a personal bank safe-deposit box triggers a prohibited transaction.
- Platinum IRA
- A self-directed IRA holding IRS-approved physical platinum (0.9995 fineness minimum). The American Platinum Eagle, produced by the U.S. Mint, is the most widely held platinum coin for IRAs. Platinum is far less common in IRAs than gold or silver.
- Premium Over Spot
- The per-ounce amount paid above current spot price for physical metal. Includes dealer markup, minting costs, and market demand. Standard bullion coin premiums (Eagles, Maple Leafs) typically run 3-8% over spot in normal markets; they can spike sharply during high-demand periods. Premium reduces the effective return on each dollar invested.
- Prohibited Transaction
- An IRS-defined transaction between an IRA and a disqualified person (account holder, lineal family members, fiduciaries) that triggers the entire IRA value to be treated as distributed in the year of the transaction. Examples: personally storing IRA gold, borrowing from your IRA, using IRA metals as loan collateral. Source: IRC Section 4975.
- Proof Coin
- A specially struck coin with mirror-like surfaces and frosted raised designs, produced to higher quality standards than standard bullion. Proof coins carry significant premiums. The IRS has not categorically excluded proofs from IRAs, but many custodians limit IRA purchases to standard bullion to eliminate any collectible classification risk.
- Purity Standard
- IRS minimum metal content for IRA eligibility: gold 0.995 (exception: American Gold Eagle at 0.9167), silver 0.999, platinum 0.9995, palladium 0.9995. Source: IRC Section 408(m)(3).
Q
- Qualified Distribution
- A distribution from a Roth IRA that is tax-free and penalty-free. Two conditions must both be met: (1) the account is at least 5 years old (counted from January 1 of the first contribution year) and (2) the owner is 59½ or older, disabled, or deceased. Source: IRS Publication 590-B.
- Qualified Retirement Plan
- A tax-advantaged employer-sponsored plan meeting IRS requirements under IRC Section 401. Examples: 401k, 403(b), defined benefit pension, profit-sharing plan. Assets in these plans can often be rolled over into a traditional gold IRA upon separation from employment or reaching 59½.
R
- Recharacterization
- Treating a contribution made to one IRA type as if it had been made to another. The Tax Cuts and Jobs Act of 2017 eliminated recharacterization of Roth conversions, but contribution recharacterizations remain allowed. Consult your tax advisor for applicability to your specific situation.
- Required Beginning Date (RBD)
- The deadline by which you must begin taking required minimum distributions. Under the SECURE 2.0 Act, the RBD is April 1 of the year after you turn 73 (born 1951-1959) or 75 (born 1960 or later). Source: IRS.gov.
- Required Minimum Distribution (RMD)
- The annual minimum withdrawal the IRS requires from traditional IRAs starting at the Required Beginning Date. Calculated by dividing the prior December 31 account balance by an IRS life expectancy factor. For gold IRAs, the custodian typically sells enough metal to fund the cash RMD unless an in-kind distribution is elected. Roth IRAs have no RMDs during the owner’s lifetime. Source: IRS Publication 590-B.
- Rollover
- Moving retirement assets from one account to another. Direct rollover: funds move institution-to-institution, no withholding, no 60-day deadline. Indirect rollover: funds pass through the account holder, 20% withholding applies for plan-to-IRA, 60-day redeposit deadline. A rollover from an existing 401k or IRA is the most common way to fund a gold IRA beyond annual contributions.
- Roth Conversion
- The process of moving assets from a traditional IRA (or other pre-tax account) to a Roth IRA. The converted amount is included in ordinary income in the conversion year and taxed accordingly. For a gold IRA, the custodian establishes the FMV of metals at conversion. Consult your tax advisor before converting; it can significantly increase taxable income in the conversion year.
- Roth IRA
- An individual retirement account funded with after-tax dollars. Qualified distributions are tax-free. No required minimum distributions during the owner’s lifetime. Income limits apply to direct contributions ($161,000 single / $240,000 married filing jointly in 2024). High earners may use a backdoor Roth. A Roth gold IRA holds physical metals under Roth tax treatment. Source: IRS Publication 590-A.
- Round
- A coin-shaped precious metals disk struck by a private mint rather than a government mint. Not legal tender. IRA eligibility depends on whether the round comes from an accredited manufacturer meeting IRS fineness standards. Not all custodians accept rounds; verify before purchasing for an IRA.
- Rule 72(t) / SEPP
- Substantially Equal Periodic Payments. An IRS exception to the 10% early withdrawal penalty allowing distributions before age 59½ if taken as an annuity-like series of equal payments using IRS-approved methods. Must continue for the longer of 5 years or until age 59½. Modifying the payment schedule before the required period ends reinstates the penalty retroactively. Source: IRC Section 72(t)(2)(A)(iv).
S
- SEC
- The U.S. Securities and Exchange Commission. Regulates securities markets and investment products. Physical precious metals are commodities, not securities, so the SEC does not directly regulate gold IRA dealers. The SEC does regulate gold ETFs and issues investor alerts on precious metals fraud. Source: investor.gov.
- SECURE Act
- The Setting Every Community Up for Retirement Enhancement Act, enacted December 2019. Key IRA changes: raised the RMD starting age from 70½ to 72, eliminated the age cap on traditional IRA contributions, and changed inherited IRA rules to a 10-year payout for most non-spouse beneficiaries. Followed by SECURE 2.0 (2022). Source: IRS.gov.
- Segregated Storage
- Storage in which your specific coins or bars are held separately, identified by serial number and weight, not mixed with other clients’ metals. Often used interchangeably with allocated storage. Higher fees than commingled storage. Provides certainty that the metals returned are physically the same ones deposited.
- Self-Directed IRA (SDIRA)
- An IRA in which the account holder directs all investment decisions, as opposed to a standard brokerage IRA restricted to that platform’s offerings. An SDIRA requires a specialized custodian and allows physical precious metals, real estate, private equity, and other alternative assets. Every gold IRA is technically an SDIRA.
- Silver IRA
- A self-directed IRA holding IRS-approved physical silver (0.999 fineness minimum). The American Silver Eagle is the most common silver coin held in IRAs. Other eligible options include the Canadian Silver Maple Leaf, Austrian Silver Philharmonic, and bars from LBMA-accredited refiners.
- Spot Price
- The current market price for immediate delivery of one troy oz of a metal, quoted in U.S. dollars. Changes continuously during trading hours, derived primarily from the nearest active COMEX futures contract. Dealers price physical metals at spot plus a per-ounce premium. Spot price alone does not reflect the full cost of buying physical gold for an IRA.
- Storage Fees
- Annual fees charged by the IRA-approved depository for holding your physical metals. Range from flat annual rates ($100-$200 for smaller accounts) to percentage-of-value models (typically 0.10-0.35% annually). Segregated storage costs more than commingled. Always request a complete fee schedule from both custodian and depository.
- SECURE 2.0 Act
- Legislation enacted December 29, 2022 (Division T of the Consolidated Appropriations Act 2023). Key IRA changes: raised the RMD starting age to 73 (effective 2023) and eventually 75 (for those born 1960 or later), reduced penalties for missed RMDs, and updated catch-up contribution rules. Source: IRS.gov.
T
- Tax-Deferred Growth
- Investment growth not subject to current-year income taxes until withdrawal. In a traditional IRA, gold price appreciation accumulates without annual tax. For Roth IRAs, growth on qualifying accounts is tax-free (not merely deferred) on qualified distributions.
- Traditional IRA
- An IRA funded with pre-tax or after-tax contributions where growth is tax-deferred and distributions are taxed as ordinary income. Standard distribution rules apply to traditional gold IRAs: RMDs begin at the Required Beginning Date, and a 10% penalty applies to withdrawals before 59½ (with exceptions). Source: IRS Publication 590-A.
- Transfer (IRA-to-IRA)
- Moving IRA assets directly from one custodian to another, with no money passing through the account holder’s hands. Not subject to the once-per-year rollover rule. No 60-day deadline. The most straightforward method for moving an existing traditional or Roth IRA to a new gold IRA custodian.
- Trustee
- The entity legally responsible for administering IRA assets under the IRA agreement. For self-directed gold IRAs, this is typically the specialized custodian (e.g., Equity Trust). The trustee executes purchases, holds metals through the depository, and files required IRS forms. Investment decisions remain the account holder’s responsibility.
- Troy Ounce
- The standard weight unit for precious metals, equal to 31.1035 grams. Approximately 10% heavier than a standard avoirdupois ounce (28.35 grams) used in everyday commerce. All precious metals prices, including gold spot, are quoted per troy ounce. A quoted gold price of $2,000 means $2,000 per troy ounce, not per standard ounce.
U
- Unallocated Storage
- See Commingled Storage. The depository tracks your claim as a weight of metal in a shared pool, not as specific identified bars. Some depositories use “unallocated” precisely to mean pooled storage; “allocated” then means specific bars assigned. The terminology is not standardized across custodians; always ask for written clarification.
- Uniform Lifetime Table
- The IRS actuarial table most IRA owners use to calculate required minimum distributions. Updated effective January 1, 2022 (using current mortality data, producing slightly smaller RMDs than the prior table). Source: IRS Publication 590-B, Appendix B, Table III.
V
- Vault / Vaulting
- Secure, climate-controlled storage facilities used by approved depositories to hold IRA metals. IRS-approved depositories maintain insurance coverage, 24-hour monitoring, and periodic independent audits. “Vaulting fee” is sometimes used interchangeably with “storage fee.”
- Verified Purity
- Assurance that a coin or bar meets the IRS minimum fineness, established through production by a national government mint, an LBMA-listed refiner, or an exchange-accredited manufacturer. Custodians restrict IRA purchases to coins and bars from vetted producers to ensure purity compliance and avoid collectible classification risk.
W
- Wire Transfer Fee
- A charge by financial institutions for electronically moving funds between banks. Common during the gold IRA funding process. Fees range from $0 to $50 per transfer depending on the institution. Include wire fees in your total account-opening cost estimate.
- Withdrawal Rules
- The IRS rules governing IRA distributions: no penalty-free withdrawals before 59½ (with exceptions), RMDs mandatory for traditional IRAs starting at age 73/75, Roth IRAs exempt from owner-lifetime RMDs, and in-kind or cash distribution options for physical metals. Source: IRS Publication 590-B.
- World Gold Council
- An independent market development organization backed by major gold mining companies. Publishes quarterly gold demand trend reports and investment research. Not a regulatory body. Useful for supply/demand data and historical context. Source: gold.org.
Frequently Asked Questions
What is the minimum gold purity required for a gold IRA?
Gold held in an IRA must be at least 0.995 fine (99.5% pure) under IRC Section 408(m)(3). The one exception is the American Gold Eagle, which is 0.9167 fine (22 karat) but was explicitly exempted by Congress in the Taxpayer Relief Act of 1997. Most other IRA-eligible coins (Canadian Maple Leaf, American Gold Buffalo, Austrian Philharmonic) are 0.9999 fine, well above the minimum. Source: IRS Publication 590-B.
Can I store my gold IRA metals at home?
No. Storing IRA-owned metals at home, in a personal safe-deposit box, or anywhere the account owner controls directly constitutes a prohibited transaction under IRC Section 4975. The consequence is that the IRS treats the entire IRA as distributed in the year of the violation, triggering income tax and potentially the 10% early withdrawal penalty. IRA metals must be stored at an IRS-approved third-party depository. Source: IRS Publication 590-B.
What is the difference between a direct rollover and an indirect rollover?
A direct rollover moves funds institution-to-institution. The money never passes through your hands, no tax is withheld, and no deadline applies. An indirect rollover sends funds to you first; you have 60 days to redeposit the full amount in the new account. For employer plan-to-IRA indirect rollovers, the plan withholds 20% for taxes, which you must replace out of pocket to avoid a partial taxable distribution. The IRS limits indirect rollovers to one per 12-month period across all your IRAs combined. Direct rollovers and trustee-to-trustee transfers have no such limit.
What are required minimum distributions for gold IRAs?
Traditional gold IRAs follow the same RMD rules as any traditional IRA. Starting at the Required Beginning Date (April 1 of the year after you turn 73, or 75 if born in 1960 or later), you must withdraw at least the RMD amount each year. The custodian calculates the RMD based on the account’s December 31 prior-year fair market value divided by your IRS life expectancy factor. Distributions can be taken in cash (custodian sells metal) or in-kind (physical metals shipped to you). Roth gold IRAs have no RMDs during the owner’s lifetime. Source: IRS Publication 590-B.
What is the difference between allocated and commingled storage?
In allocated (segregated) storage, your specific coins or bars are identified by serial number and set aside exclusively for your account. You receive the same pieces back at distribution. In commingled (pooled) storage, your metals are held in a shared vault tracked by weight and type. You receive metals of equivalent weight and purity at distribution, not your original pieces. Allocated storage costs more. Both types are offered by IRS-approved depositories and both satisfy IRS rules for gold IRAs.
Sources
- IRS Publication 590-A: Contributions to Individual Retirement Arrangements (IRAs) , irs.gov/publications/p590a
- IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs) , irs.gov/publications/p590b
- IRC Section 408(m): Precious metals IRA eligibility standards , law.cornell.edu/uscode/text/26/408
- IRC Section 4975: Prohibited transactions , law.cornell.edu/uscode/text/26/4975
- FINRA Investor Alert: Precious Metals Fraud , finra.org
- SEC Investor Alert: Precious Metals , investor.gov
- LBMA Good Delivery Rules (Gold and Silver) , lbma.org.uk
- U.S. Mint Bullion Coin Programs , usmint.gov
- SECURE 2.0 Act of 2022 (Division T, Consolidated Appropriations Act 2023) , irs.gov
- Equity Trust Company, custodian information , equitytrustcompany.com
- Augusta Precious Metals, minimum investment and company info , augustapreciousmetals.com
- Birch Gold Group, company information , birchgold.com
- Noble Gold Investments, company information , noblegoldinvestments.com
- Bobrow v. Commissioner, T.C. Memo. 2014-21 (clarifying one-rollover-per-year rule)
All sources accessed and facts verified as of 2026-05. Verify regulatory and company-specific information directly with IRS.gov and the provider before any filing or purchase decision.