Quick answer
Both the French 20 Franc Napoleon and Rooster and the Swiss 20 Franc Vreneli are .900 fine (90% gold), well below the .995 fineness minimum that IRC 408(m)(3) requires for gold bullion in a self-directed IRA. No statutory carve-out covers these coins. Putting them in an IRA would be treated as a taxable distribution and may trigger penalties.
What Are French and Swiss 20 Franc Gold Coins?
The French and Swiss 20 Franc pieces are nineteenth- and early-twentieth-century circulation gold coins struck when both countries operated gold monetary standards. They remain among the most widely traded vintage gold coins in the US market today.
The French 20 Franc Napoleon features a portrait of Napoleon III or a later republic design. The French 20 Franc Rooster (Marianne/Coq Gaulois design) was minted continuously from the 1870s through the early 1900s. Both share identical technical specifications: 6.45 grams total weight, .900 fineness, and a gold content of 5.806 grams (approximately 0.1867 troy ounces).
The Swiss 20 Franc Vreneli carries a portrait of Helvetia, the female personification of Switzerland. The Swiss Federal Mint produced it from 1897 to 1949, with official re-strikes in 1965 and 1980. Its specifications match the French coins exactly: 6.45 grams total, .900 fine gold, and roughly 0.1867 troy ounces of gold per coin.
All three types circulate actively among US coin dealers. Their small diameter, broad global recognizability, and modest premiums over spot gold make them popular for fractional gold accumulation outside retirement accounts. Their appeal in the stacking community does not change their IRA status.
The Fineness Rule Under IRC 408(m)(3)
Congress designated most gold as a “collectible” for IRA purposes. Investing in a collectible is treated as a deemed distribution, triggering ordinary income tax and a 10% early withdrawal penalty for account holders under 59½. See IRS Publication 590-A for the distribution treatment.
To qualify as non-collectible, gold must satisfy at least one of two tests under IRC 408(m)(3):
- The bullion fineness test: Gold bullion must equal or exceed .995 fine (99.5%), matching the minimum fineness that CME Group requires for gold delivered under a COMEX gold futures contract.
- The statutory coin exception: Coins listed in 31 U.S.C. 5112(a)(7)-(10) (US Gold Eagles) or coins issued under the laws of any US state qualify regardless of fineness.
French and Swiss 20 Franc coins fail both tests. At .900 fine, they fall well short of the .995 bullion threshold. They are not US coins, and France and Switzerland are not US states. No IRA custodian can legally accept them.
The One-Line Test You Can Apply to Any Coin
Before asking a custodian or a financial adviser whether any gold coin belongs in your IRA, run this test:
Is this coin .995 fine gold or better, OR is it a US Gold Eagle under 31 U.S.C. 5112? If neither answer is yes, the coin is not IRA-eligible.
The test works because the law offers exactly two doors: the fineness door and the US statutory coin door. Common coins that pass through one of those doors include the American Gold Buffalo (.9999 fine), the Canadian Gold Maple Leaf (.9999 fine), the Austrian Gold Philharmonic (.9999 fine), and the American Gold Eagle (statutory exception despite .9167 fineness). Common coins that do not pass include the French Napoleon, the French Rooster, the Swiss Vreneli, the British Sovereign (.9167 fine), and the South African Krugerrand (.9167 fine).
The chart below makes the fineness gap concrete. The IRA minimum for bullion sits at 99.5%. The French and Swiss 20 Franc coins fall roughly nine to ten percentage points below that line. The US Gold Eagle is the only coin below 99.5% that qualifies, and it does so only because Congress named it by statute.
Why the French and Swiss 20 Franc Coins Fail on Two Counts
Count 1: Below the .995 Bullion Threshold
Gold fineness of .900 means the coin is 90% gold and 10% copper alloy. This alloying technique was standard practice for nineteenth-century circulation coinage: pure gold is too soft to survive daily handling. From a stacking standpoint, .900 fine is perfectly serviceable for non-IRA physical gold. From an IRS standpoint, it does not satisfy the bar for IRA-eligible bullion, which stands at .995 fine.
The .995 threshold is not arbitrary. It matches the CME Group COMEX gold futures delivery standard, which requires gold bars and kilo bars of at least 99.5% purity for good delivery. By tying the IRA rule to the institutional futures standard, Congress aligned retirement-account gold with exchange-grade metal, not circulation-era coinage.
A coin at .900 fine has 9.5 percentage points of gold replaced by copper. No documentation, grading certification, or dealer letter converts that composition into .995 fine. The gap is structural.
Count 2: Outside the Statutory Coin Exception
The only coins that can enter an IRA below the .995 threshold are those named in 31 U.S.C. 5112(a)(7)-(10): the American Gold Eagle in four denominations (1 oz, 1/2 oz, 1/4 oz, 1/10 oz). A second clause in IRC 408(m)(3) extends eligibility to coins issued under the laws of any US state, covering instruments like the Utah Goldback. The statute does not extend any exemption to coins issued by foreign sovereign governments.
Some dealers market French and Swiss 20 Franc coins using language that implies IRA compatibility, sometimes pairing them with the general phrase “IRA-eligible gold.” This framing is misleading. Neither the French Mint nor the Swiss Federal Mint falls within the statutory exception. A coin produced in Paris or Bern in 1905, regardless of its preservation or numismatic grade, has no path into a self-directed gold IRA under current law.
French and Swiss 20 Franc Coins vs. IRA-Eligible Alternatives
| Coin | Fineness | Gold Content (troy oz) | IRA-Eligible? | Basis |
|---|---|---|---|---|
| French 20 Franc (Napoleon / Rooster) | .900 | ~0.1867 | No | Below .995; not a US statutory coin |
| Swiss 20 Franc Vreneli | .900 | ~0.1867 | No | Below .995; not a US statutory coin |
| US Gold Eagle (1/10 oz) | .9167 | 0.1000 | Yes | Named in 31 U.S.C. 5112(a)(7)-(10) |
| US Gold Buffalo (1/10 oz) | .9999 | 0.1000 | Yes | Meets .995 bullion threshold |
| Canadian Gold Maple Leaf (1/10 oz) | .9999 | 0.1000 | Yes | Meets .995 bullion threshold |
| Austrian Gold Philharmonic (1/10 oz) | .9999 | 0.1000 | Yes | Meets .995 bullion threshold |
The 1/10 oz fractional coins in the table carry higher premiums than the 20 Franc pieces but deliver the closest available format match for buyers who want small-denomination gold inside a retirement account. Custodians accept them without difficulty. Use our IRA coin eligibility checker to verify any specific coin before initiating a purchase or transfer.
Why Collectors and Stackers Still Value These Coins
IRA ineligibility does not reduce the practical or historical appeal of French and Swiss 20 Franc coins for gold held outside a retirement account. Several factors keep them consistently in demand.
Divisibility and compact size. At approximately 0.1867 troy ounces, a French Rooster or Swiss Vreneli holds a useful quantity of gold in a coin thin enough to stack dozens in a standard tube. Buyers who prefer to accumulate gold incrementally or liquidate in small pieces find the denomination practical for both purposes.
Low premiums over spot. Because mintages of both French and Swiss 20 Franc coins ran into the tens of millions over multiple decades, secondary market supply is deep. Premiums over spot gold tend to run below those of modern fractional bullion coins, which makes them an efficient vehicle for pure gold exposure when IRA considerations are not a factor.
Broad recognition in international markets. In continental European markets, the Vreneli and the Rooster are among the most recognized gold coins. This recognition supports resale liquidity across multiple countries, which matters for investors who may need to liquidate in different markets or currencies.
Historical provenance. Pre-1933 gold coinage carries a story that modern minted bullion does not. The Rooster design dates to a period when gold circulated as everyday money. Coin dealers specializing in numismatics and old-world gold list these pieces regularly. You can search the coin dealer directory on this site to find specialists who carry European pre-1933 gold.
Small-Format IRA-Eligible Alternatives
If the attraction of a French or Swiss 20 Franc coin is its compact size and relatively modest per-coin price, the following IRA-eligible coins offer the closest format match.
American Gold Eagle 1/10 oz. The smallest Eagle carries a $5 face value and is produced by the US Mint. It qualifies for IRAs under the statutory exception in IRC 408(m)(3). Premiums run higher than those on 20 Franc pieces, but the coin is universally recognized by US IRA custodians. Holding IRA gold as multiple small coins rather than a single large bar also gives more flexibility for in-kind distributions once you reach the required minimum distribution age.
American Gold Buffalo 1/10 oz. The Buffalo was the first .9999 fine gold coin produced by the US Mint. It meets the .995 bullion fineness threshold without needing a statutory exception, making custodian acceptance straightforward.
Canadian Gold Maple Leaf 1/10 oz. The Royal Canadian Mint’s flagship gold coin is .9999 fine and accepted by virtually every US self-directed IRA custodian. Deep global secondary market volume supports strong liquidity when it comes time to sell or take an in-kind distribution.
Austrian Gold Philharmonic 1/10 oz. The Vienna Philharmonic coin is .9999 fine and carries legal tender status in Austria, denominated in 25 euros at the 1/10 oz size. US IRA custodians accept it under the .995 bullion standard.
All four alternatives hold approximately 0.1000 troy ounces of gold per coin, somewhat less than the 0.1867 oz of a 20 Franc piece. For a comparable gold exposure by weight, two fractional coins roughly match one 20 Franc coin. For a full overview of all IRA-eligible metals and fineness requirements, see our Gold IRA rules guide.
What To Do If You Have Inherited French or Swiss 20 Franc Coins
Inherited 20 Franc gold coins cannot be transferred directly into a self-directed IRA. Three paths are available to heirs.
First, the coins can remain as personal taxable property. Under current tax law, inherited assets receive a stepped-up cost basis equal to fair market value on the date of the original owner’s death. Any gold price appreciation that occurred during the decedent’s lifetime is generally not taxed to the heir at that point; only appreciation after the inheritance date would be subject to capital gains tax on a future sale.
Second, if IRA exposure to gold is the goal, the coins can be sold through a coin dealer, the proceeds deposited into a bank account, and then contributed or rolled over into a self-directed IRA funded with cash. That cash can be used to purchase IRA-eligible bullion through the custodian’s normal process.
Third, if selling promptly while comparing offers from multiple buyers is a priority, posting a free request through Goldiew connects you with verified dealers who specialize in old-world European gold.
Selling Inherited French or Swiss Gold Coins?
Post one free request on Goldiew Sell Gold and receive sealed offers from up to 15 verified buyers who purchase old-world gold, including French Roosters, Napoleon 20 Francs, and Swiss Vrenelis. No obligation, no listing fee, and no commitment required. You can also browse the coin dealer directory to find local specialists who actively buy European pre-1933 gold coins.
Frequently Asked Questions
Can I put any foreign gold coin in a self-directed IRA?
No. A foreign gold coin qualifies for a self-directed IRA only if it meets the .995 fineness bullion standard under IRC 408(m)(3). Coins like the Canadian Gold Maple Leaf (.9999 fine), the Austrian Gold Philharmonic (.9999 fine), and the Australian Gold Kangaroo (.9999 fine) pass that test. Coins like the British Sovereign (.9167 fine), the South African Krugerrand (.9167 fine), and the French and Swiss 20 Franc pieces (.900 fine) do not. The US Gold Eagle is the sole exception below .995, and it qualifies only because Congress named it directly in statute, not because of its fineness.
Why can the US Gold Eagle enter an IRA when it is only .9167 fine?
Congress created an explicit carve-out for the American Gold Eagle in the legislation that authorized the coin series. The carve-out appears in IRC 408(m)(3) through a cross-reference to 31 U.S.C. 5112(a)(7)-(10), which defines the Eagle denominations. No equivalent carve-out exists for any foreign-issued coin. The Eagle’s IRA eligibility is a legal designation tied to its authorization in federal law, not a reflection of its gold content relative to the .995 standard.
What happens if a custodian accidentally accepts a French 20 Franc coin into an IRA?
The IRS treats the purchase as a deemed distribution equal to the cost of the coin at the time it entered the account. The account holder owes ordinary income tax on that amount in the year of the transaction, plus a 10% early withdrawal penalty if the account holder is under 59½. The error does not self-correct; it must be unwound through a return of the coin and a correction of account records. If you discover an ineligible coin inside your IRA, contact your custodian immediately to discuss a correction procedure.
Is a French 20 Franc coin a collectible under the IRS definition?
Yes. Under IRC 408(m)(2), the statute classifies coins as collectibles by default, then carves out specific exceptions for eligible bullion and certain US coins. Because the French 20 Franc does not satisfy any of those carve-out conditions, it remains a collectible for IRA purposes. This classification applies regardless of whether a particular coin trades at a collector premium above melt value or at melt value itself. The determining factor is the coin’s legal and metallurgical specifications, not its market pricing.
Can IRA-eligible gold be stored at home instead of an approved depository?
No. IRC 408(m)(3)(B) requires IRA-eligible bullion to be in the physical possession of a trustee as described in IRC 408(a). Trustees include banks, credit unions insured by the National Credit Union Administration, and certain other IRS-approved entities operating approved depositories. Storing IRA gold at home, in a personal safe, or with any custodian of the account holder’s own choosing outside that framework voids the IRA tax benefits and triggers a deemed distribution. Marketing claims that a home-storage gold IRA is lawful are not consistent with the statutory text.
Can I sell French or Swiss 20 Franc coins back to a gold IRA company?
Gold IRA companies typically operate buyback programs for IRA-eligible bullion that they or affiliated custodians originally placed in customer accounts. They generally do not include ineligible coins in those programs because the coins cannot re-enter a customer IRA and are outside the company’s core product set. For French and Swiss 20 Franc coins, the better sales channels are coin dealers, numismatic auction houses, and platforms specializing in old-world gold. Posting a free request on our sell gold page connects you with verified buyers who actively purchase pre-1933 European coins.
Sources
- Internal Revenue Code IRC 408(m)(3): IRA investment in collectibles; the bullion and coin exceptions.
- IRS Publication 590-A, Contributions to Individual Retirement Arrangements (IRAs): treatment of collectibles as deemed distributions.
- 31 U.S.C. 5112: Denominations, specifications, and design of coins; subsections (a)(7)-(10) define the American Gold Eagle series eligible for IRAs.
- CME Group: COMEX Gold Futures Contract Specifications: 99.5% minimum gold fineness for futures delivery.
- Banque de France historical coinage records: French 20 Franc coin specifications (6.45g total weight, .900 fine, 5.806g gold content, approximately 0.1867 troy oz).
- Swiss Federal Mint (Swissmint): Swiss 20 Franc Vreneli specifications (6.45g total weight, .900 fine, production from 1897 to 1949 plus re-strikes).