Quick answer
The estate tax sunset did not happen. The $15 million per-person exemption is now permanent.
The One Big Beautiful Bill Act, signed July 4, 2025, permanently extended the higher estate tax exemption at $15 million per person starting in 2026, indexed for inflation. For most gold IRA holders, federal estate tax is no longer the primary planning concern. The real challenge: traditional gold IRAs carry no step-up in basis at death and force your beneficiaries to pay ordinary income tax on every distribution under the SECURE Act 10-year rule. That income tax bill can exceed what any estate tax would have cost.
What the “sunset” was and why it matters that it did not happen
For several years, estate planners warned clients about the TCJA sunset. The Tax Cuts and Jobs Act of 2017 temporarily doubled the federal estate tax exemption, raising it from approximately $5.5 million per person to over $12 million. That doubling was scheduled to expire on January 1, 2026, automatically reverting the exemption to the pre-2018 level, which inflation adjustments would have placed at roughly $7 million per person.
If the sunset had occurred, estates valued between $7 million and $13 million would have suddenly faced federal estate tax liability they did not owe the year before. Gold IRA holders in that range were right to plan around it. Countless articles published between 2022 and mid-2025 built strategy around that expiration date. That advice is now outdated.
On July 4, 2025, the One Big Beautiful Bill Act was signed into law. Among its tax provisions: the higher exemption was made permanent. The sunset did not happen. Any content you read before mid-2025 that treats the sunset as an upcoming event reflects law that no longer applies.
The current federal estate tax exemption: what is permanent now
Under the One Big Beautiful Bill Act, the federal estate tax unified credit exemption is set at $15 million per individual starting in tax year 2026. The amount is indexed to inflation and will adjust upward in subsequent years. For a married couple taking advantage of portability, meaning the surviving spouse uses the deceased spouse’s unused exemption, the combined sheltered amount is effectively $30 million.
Verify the current inflation-adjusted figure directly at IRS.gov Estate and Gift Taxes before making any decisions. The IRS announces the inflation-adjusted exemption amount each fall for the following year.
What this means for most readers
If your total net estate, including your gold IRA, real estate, investment accounts, and other assets, is below $15 million, your estate owes no federal estate tax. The federal estate tax is now a concern primarily for very high-net-worth families. That said, state estate taxes are a separate matter covered below, and 12 states plus the District of Columbia still impose their own estate taxes at much lower thresholds.
Consult a qualified estate planning attorney to confirm how these rules apply to your specific situation.
The real issue for gold IRA holders: income tax, not estate tax
Here is what the estate tax conversation tends to obscure: the income tax problem does not go away because the estate tax exemption went up. For most gold IRA holders, the income tax your beneficiaries will owe on the account is the larger and more immediate planning challenge.
Two rules drive this exposure. The first is the concept of Income in Respect of a Decedent. The second is the SECURE Act 10-year distribution rule. Together, they create a tax burden for beneficiaries of traditional gold IRAs that can run into the hundreds of thousands of dollars on a moderately sized account.
Income in Respect of a Decedent: why gold IRAs get no step-up
When you die, most assets you own receive a step-up in basis. Under IRS Publication 559 (Survivors, Executors, and Administrators) and the underlying rule in Internal Revenue Code Section 1014, your heirs inherit most assets as if they purchased them at the fair market value on the date of your death. If you bought a stock at $10 and it was worth $100 when you died, your heir’s cost basis is $100. They owe zero capital gains tax on that lifetime appreciation.
Traditional IRA assets, including the gold and silver held inside a gold IRA, do not receive this step-up. They are classified as Income in Respect of a Decedent under Internal Revenue Code Section 691. The IRS treats these assets as income the deceased would have paid tax on if they had lived to receive it. That tax obligation passes to the beneficiary. Every dollar distributed from an inherited traditional gold IRA is taxable as ordinary income at the beneficiary’s marginal federal income tax rate.
The physical nature of the metal is irrelevant. A gold American Eagle inside a traditional IRA receives no more favorable treatment than a money market fund in the same account. IRD status is determined by the account type, not the asset inside it.
The SECURE Act 10-year rule: why the timing is compressed
Before the Setting Every Community Up for Retirement Enhancement Act of 2019, most non-spouse beneficiaries could stretch required minimum distributions from an inherited IRA over their own life expectancy. That could mean small, manageable taxable withdrawals spread over three or four decades.
The SECURE Act ended the stretch IRA for most beneficiaries. Under the current rule, codified in Internal Revenue Code Section 401(a)(9)(H) and explained in IRS Publication 590-B, most non-spouse beneficiaries must empty the entire inherited IRA by December 31 of the 10th year following the year of the original owner’s death. There is no required annual distribution amount within that window, but the full balance must be distributed and taxed before the 10-year deadline expires.
For a beneficiary who already earns a significant income, inheriting a large traditional gold IRA and distributing it over 10 years can push them into the 37% federal marginal bracket for a meaningful portion of that period. The entire pre-tax balance, plus any appreciation since the original contributions, becomes taxable ordinary income.
Exceptions to the 10-year rule include surviving spouses, the minor children of the deceased (until they reach the age of majority, after which the 10-year rule applies), disabled and chronically ill individuals, and beneficiaries not more than 10 years younger than the deceased. For the full framework on how these rules apply to inherited accounts, see our guide to inherited gold IRA rules.
Gold in a taxable account: where the step-up applies
If instead of holding gold inside a traditional IRA you hold gold coins, gold bars, or gold ETFs in a standard taxable brokerage account, the step-up in basis does apply at your death.
Under Internal Revenue Code Section 1014, your heir’s cost basis in that gold becomes the fair market value on the date of your death. If you purchased gold at $1,200 per ounce years ago and it was valued at $2,500 per ounce at your death, your heir inherits with a $2,500 cost basis. If they sell shortly after, the capital gain is zero or minimal. The lifetime appreciation effectively disappears from the tax picture.
This is a factual distinction, not investment advice about how to allocate retirement assets. Whether holding gold inside or outside an IRA is appropriate for your situation depends on your income, tax bracket, time horizon, and estate goals and should be analyzed with a licensed financial advisor and tax professional. But understanding the mechanics matters: gold inside a traditional IRA does not receive the step-up, while gold held in a taxable account does.
Side-by-side: traditional gold IRA vs. gold in a taxable account at death
| Factor | Traditional Gold IRA | Gold in a Taxable Account |
|---|---|---|
| Step-up in basis at owner’s death | No (IRC § 691, Income in Respect of Decedent) | Yes (IRC § 1014) |
| Beneficiary income tax on inherited balance | Ordinary income tax on every dollar distributed | Capital gains tax only on post-death appreciation (often zero if sold promptly) |
| Federal tax rate applied to distributions | Beneficiary’s marginal income rate (up to 37%) | Long-term capital gains rate (0%, 15%, or 20%) for assets held over one year |
| Distribution deadline for non-spouse beneficiary | Full balance must be distributed within 10 years (SECURE Act) | No required distribution timeline |
| Tax benefit during the owner’s lifetime | Tax-deferred growth; contributions may be deductible (traditional IRA) | No upfront deduction; gains and dividends reported annually |
| Federal estate tax treatment | Included in taxable estate; sheltered below $15M per-person threshold | Same: included in taxable estate; sheltered below $15M threshold |
| Metal eligibility rules | Must meet IRS fineness requirements under IRC § 408(m)(3) | No IRS fineness requirement; any gold product eligible |
This comparison is illustrative. Consult your tax advisor and an estate planning attorney for analysis specific to your estate and income tax situation. Tax rates, bracket thresholds, and individual circumstances vary significantly.
Three planning levers for gold IRA holders
For gold IRA holders who want to reduce the income tax burden their beneficiaries will face, three primary strategies are available. Each involves tradeoffs and should be evaluated with qualified professional guidance.
Roth conversion
Converting some or all of a traditional gold IRA to a Roth IRA means paying ordinary income tax now, at your current rate, in exchange for tax-free treatment on all future growth and distributions. Beneficiaries who inherit a Roth IRA still face the SECURE Act 10-year rule, but withdrawals from a qualified Roth IRA are income-tax-free. The IRD issue becomes irrelevant because Roth distributions are not taxable income for the beneficiary. The amount you convert is added to your taxable income in the year of conversion, so timing, conversion amount, and the resulting bracket implications require careful planning. The pro-rata rule may also apply if you have a mix of pre-tax and after-tax IRA balances. Consult your tax advisor before initiating any conversion.
Beneficiary designations
The beneficiary designation form on file with your IRA custodian, not your will, controls who receives your gold IRA at your death. A surviving spouse who inherits an IRA can roll it into their own account and is not subject to the 10-year rule. Other “eligible designated beneficiaries” who may use the life-expectancy method instead of the 10-year rule include disabled or chronically ill individuals and those not more than 10 years younger than the deceased. Naming the right beneficiaries, and structuring designations correctly, can significantly change the tax outcome for your heirs. If you are considering naming a trust as beneficiary, specific drafting is required to avoid triggering a less favorable distribution rule. Review your designations and discuss the options with an estate planning attorney. For the full framework, see our guide to gold IRA beneficiary designations.
Taxable account allocation
If leaving gold to your heirs with a reduced income tax burden is a priority, the distinction between holding gold inside a traditional IRA versus in a taxable brokerage account is worth analyzing with your advisor. Inside the IRA you benefit from tax-deferred growth and potential deductibility at the time of contribution. Outside the IRA your heirs may receive the step-up at death, eliminating capital gains tax on the lifetime appreciation. This is not an either/or choice for most people. It is a question of proportion and timing, analyzed in the context of your full financial and estate plan. Note: once assets move into an IRA, they lose the step-up benefit. The analysis works in one direction only.
For those who name a trust as IRA beneficiary, income tax bracket compression at the trust level adds a separate complication. Trusts reach the top 37% federal income tax bracket at very low income thresholds compared to individual filers. See our guide on IRA distributions to trusts and income tax brackets for details.
State estate taxes: the layer most retirees underestimate
While the federal estate tax now only affects very large estates, 12 states and the District of Columbia impose their own estate taxes with exemptions far below the federal threshold. Some of these exemptions are as low as $1 million, and none mirrors the federal $15 million level. A retirement saver with a gold IRA, a home with significant equity, and investment accounts could have an estate that triggers state estate tax while remaining entirely below the federal threshold.
Six states also impose an inheritance tax paid by the beneficiary rather than the estate: Iowa (currently being phased out), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania. Maryland is the only state that imposes both an estate tax and an inheritance tax. In states with an inheritance tax, whether your gold IRA beneficiaries owe state tax depends on their relationship to you and the specific state rules.
State tax law changes frequently and varies significantly. Verify your state’s current rules with a licensed estate planning attorney familiar with your state or your state department of revenue. Consult your tax advisor for your specific situation.
Worked example: illustrative, not personalized advice
Robert and Karen, both 68, live in a state with no state estate tax. Their combined estate is valued at $4.2 million: a home ($600,000), taxable investment accounts ($1.1 million), and Robert’s traditional gold IRA ($2.5 million, grown from a 401(k) rollover executed 20 years earlier).
Federal estate tax concern at the $15 million exemption: none. Their estate falls well below the threshold.
Income tax concern for their daughter, the sole IRA beneficiary: significant. Under the SECURE Act 10-year rule, she must distribute the full $2.5 million by December 31 of the 10th year after Robert’s death. If she takes roughly equal annual distributions, that is approximately $250,000 per year of ordinary income on top of her existing salary, potentially pushing her into the 37% federal bracket for a meaningful portion of the 10-year period.
The home and the taxable investment accounts, by contrast, receive a step-up in basis at death under IRC Section 1014. Any capital appreciation that accrued during Robert’s lifetime disappears from the tax picture for those assets.
A Roth conversion strategy executed over several years, ideally during lower-income periods, could have pre-paid the tax at lower rates and left the daughter a tax-free inheritance. The tradeoff: paying the conversion tax upfront versus deferring it to the beneficiary. Whether that tradeoff made sense depends on relative tax rates, Robert’s remaining life expectancy, and other factors a CPA or financial planner could model.
Past performance is not a guarantee of future results. Tax law may change after the date of this guide.
Next steps: when to get professional guidance
Estate planning for gold IRAs sits at the intersection of IRS metal eligibility rules, retirement distribution law, income tax strategy, and state-specific tax rules. This guide provides a factual framework based on current law. Goldiew is not a financial advisor or tax advisor.
Before making any decisions about your estate plan, Roth conversion strategy, beneficiary designations, or account structure, work with a licensed estate planning attorney familiar with IRA assets and a CPA or enrolled agent who understands retirement distribution rules. Your IRA custodian can confirm which beneficiary designation forms are currently on file and what options are available.
If you are exploring a gold IRA for the first time or want to understand how a rollover from an existing 401(k) or traditional IRA works, Augusta Precious Metals provides no-cost educational resources on the process. Get Augusta’s free educational kit
Frequently asked questions
Did the estate tax sunset happen in 2026?
No. The One Big Beautiful Bill Act, signed July 4, 2025, made the higher estate tax exemption permanent. The sunset that was scheduled for January 1, 2026 did not occur. The federal estate tax exemption is set at $15 million per person starting in 2026, indexed for inflation thereafter. Verify the current inflation-adjusted figure at IRS.gov each year, as the adjustment is announced annually in the fall.
Does a traditional gold IRA get a step-up in basis when the owner dies?
No. Traditional IRA assets, including physical gold and silver held inside the account, are classified as Income in Respect of a Decedent under Internal Revenue Code Section 691. They do not receive a step-up in basis at death. The entire pre-tax balance, including all appreciation that occurred during the owner’s lifetime, is taxable as ordinary income when the beneficiary takes distributions. This contrasts with gold held in a taxable account, which does receive a step-up under IRC Section 1014.
How long does a beneficiary have to withdraw from an inherited gold IRA?
For most non-spouse beneficiaries, the SECURE Act 10-year rule applies: the entire inherited IRA balance must be distributed by December 31 of the 10th year after the original owner’s death. Within those 10 years, there is no required annual distribution amount. Exceptions include surviving spouses, the minor children of the deceased (subject to the 10-year rule once they reach the age of majority), disabled or chronically ill individuals, and beneficiaries not more than 10 years younger than the deceased. See IRS Publication 590-B for the full inherited IRA distribution rules.
Does a Roth gold IRA also lose the step-up in basis?
Yes, technically, but the practical impact is different. A Roth IRA is also classified as IRD and does not receive a step-up in basis. However, qualified Roth IRA distributions are already income-tax-free for the beneficiary, so the absence of a step-up is largely irrelevant in practice. Beneficiaries who inherit a Roth IRA still face the SECURE Act 10-year rule if they are non-spouse, non-eligible-designated beneficiaries, but the distributions they take within that period are not subject to federal income tax. Roth conversions are a way to pre-pay tax during the account owner’s lifetime and pass assets to heirs in a more tax-efficient form.
Which states still have estate taxes with lower exemptions than the federal level?
As of 2026, 12 states and the District of Columbia impose their own estate taxes with exemptions well below the $15 million federal threshold. These states include Oregon, Massachusetts, Washington, Connecticut, Hawaii, Illinois, Maine, Maryland, Minnesota, New York, Rhode Island, and Vermont. Some have had exemptions as low as $1 million in recent years, though most are indexed upward over time. State rules change frequently. Check your state’s department of revenue website or consult an estate attorney for the current threshold. Six states also impose an inheritance tax: Iowa (being phased out), Kentucky, Maryland, Nebraska, New Jersey, and Pennsylvania.
Can I name a trust as the beneficiary of my gold IRA?
Yes, but trust-as-beneficiary arrangements for IRAs require careful drafting. A trust that does not qualify as a “see-through trust” may trigger a 5-year distribution rule or even an accelerated payout, rather than the 10-year rule that typically applies to individual beneficiaries. Conduit trusts and accumulation trusts treat inherited IRA distributions differently, with significant tax consequences. Additionally, trusts reach the top 37% federal income tax bracket at very low income thresholds compared to individual filers, which can accelerate the tax burden on distributions that accumulate inside the trust. Work with an estate planning attorney who has specific experience with IRA beneficiary trusts before making this designation. See our guide on IRA distributions to trusts and income tax brackets.
What is portability and how does it work for married couples?
Portability allows a surviving spouse to add the deceased spouse’s unused federal estate tax exemption to their own. If the first spouse dies with an estate valued at $5 million and a $15 million exemption, the surviving spouse can potentially shelter up to $25 million from federal estate tax ($15 million of their own exemption plus $10 million of the unused first-spouse exemption). Portability is not automatic: the executor of the deceased spouse’s estate must file a federal estate tax return (Form 706) within nine months of death, or up to 15 months with extension, to elect portability. State estate taxes generally do not offer portability even when the federal return does. Consult your estate attorney about the timing and mechanics of the portability election for your situation.
What happens to Required Minimum Distributions in the year of death?
If you die after your required beginning date for RMDs (generally April 1 of the year following the year you turn 73 under SECURE 2.0), your beneficiary must take the RMD for the year of your death if you had not already done so. That RMD is not eligible to be rolled over. The beneficiary then follows the applicable inherited IRA distribution rules for subsequent years (the 10-year rule for most non-spouse beneficiaries). If you die before your required beginning date, your beneficiaries are not required to take an RMD in the year of death. Distributions taken from an inherited traditional gold IRA, including RMDs, are taxable as ordinary income. See IRS Publication 590-B for full details.
Sources
- IRS Estate and Gift Taxes: federal estate tax rules, unified credit, and current exemption amounts
- IRS Publication 559: Survivors, Executors, and Administrators: Income in Respect of a Decedent, step-up in basis rules (IRC § 691 and IRC § 1014)
- IRS Publication 590-B: Distributions from Individual Retirement Arrangements (IRAs): inherited IRA rules, 10-year rule, RMD requirements
- Internal Revenue Code Section 691: Income in Respect of a Decedent (no step-up in basis for traditional IRA assets)
- Internal Revenue Code Section 1014: Basis of property acquired from a decedent (step-up in basis for taxable account assets)
- Internal Revenue Code Section 401(a)(9)(H): SECURE Act 10-year distribution rule for most non-eligible designated beneficiaries
- SECURE Act (Setting Every Community Up for Retirement Enhancement Act of 2019), Public Law 116-94, signed December 20, 2019: eliminated the stretch IRA for most non-spouse beneficiaries
- SECURE 2.0 Act, Public Law 117-328 (2022): raised the required minimum distribution age from 72 to 73
- IRS Form 706: United States Estate (and Generation-Skipping Transfer) Tax Return: used to elect portability of the unused exemption
- One Big Beautiful Bill Act, signed July 4, 2025: permanently extended the higher estate and gift tax exemption at $15 million per person starting 2026, indexed for inflation