Which forms should a CPA expect from a client with a self-directed gold IRA?

Every year the custodian issues Form 5498 to report contributions, rollovers, Roth conversions, the year-end fair market value in Box 5, and required minimum distribution status in Boxes 11 and 12. Form 5498 is filed with the IRS by May 31 and copied to the participant. In any year the account made a reportable distribution of $10 or more, the custodian also issues Form 1099-R by January 31 showing the gross amount, taxable amount, federal withholding, and Box 7 distribution code. The client should also retain their own Form 8606 filings from any year with nondeductible contributions, Roth conversions, or Roth distributions, because that form carries basis forward. Consult the current IRS Instructions for Forms 1099-R and 5498 and confirm each year with the client's tax advisor.

How is fair market value reported for physical metals inside a self-directed IRA?

The custodian is responsible for reporting the year-end fair market value of the account on Form 5498, Box 5, by January 31 for statement purposes and by May 31 to the IRS. For physical gold, silver, platinum, or palladium held in a depository, custodians typically value the metal at the spot price on December 31, sometimes with a coin or bar premium adjustment. On an in-kind distribution, the IRS Instructions for Forms 1099-R and 5498 direct the payer to include the FMV of the property on the date of distribution in Box 1 of Form 1099-R. For a traditional IRA with no after-tax basis, the same FMV appears in Box 2a as the taxable amount.

When does a client with a gold IRA need to file Form 8606?

Per the IRS, Form 8606 is required to report nondeductible contributions to a traditional IRA, distributions from a traditional, SEP, or SIMPLE IRA when the taxpayer has ever made nondeductible contributions, conversions from a traditional, SEP, or SIMPLE IRA to a Roth IRA, and distributions from a Roth IRA. A gold IRA does not change any of these rules. Basis tracked on Form 8606 flows into the pro-rata calculation that determines the taxable portion of subsequent distributions and Roth conversions from any traditional IRA the taxpayer owns. Missing Form 8606 in a nondeductible contribution year is a common preparer error that causes double taxation of the basis at distribution.

How is an in-kind physical metal distribution treated on the return?

An in-kind distribution moves physical metal out of the IRA into the participant's personal possession. The IRS instructs the custodian to include the FMV of the metal on the distribution date in Form 1099-R Box 1. For a traditional gold IRA with no basis, the same FMV appears in Box 2a and flows through to Form 1040 as ordinary income. Box 7 carries the applicable distribution code by age or exception. The FMV reported becomes the participant's cost basis for any subsequent personal sale, and the collectibles capital gain rules apply to that later sale.

Is Form 5498 needed to file the client's tax return?

Form 5498 is an information return the custodian files with the IRS and copies to the participant. It is not attached to the 1040. However, preparers should review it to confirm regular contributions, rollover contributions, Roth conversion amounts, year-end fair market value, the RMD checkbox for the following year, and the account type. Discrepancies between Form 5498 and the client's records should be resolved with the custodian before filing, because the IRS matches Form 5498 data against the return.

How is a Roth conversion of a traditional gold IRA reported across the two forms?

The distributing traditional IRA custodian issues a Form 1099-R showing the gross amount converted in Box 1 and Box 2a, with Box 7 code 2 if the participant is under age 59 and a half (Roth conversions are a listed section 72(t) exception) or code 7 if the participant is age 59 and a half or older. There is no dedicated conversion code. The receiving Roth IRA custodian reports the conversion contribution on Form 5498 Box 3. The taxpayer files Form 8606 to compute the taxable portion, applying the pro-rata rule if there is aggregate traditional IRA basis. Ordinary income tax applies to the converted amount minus any pro-rata basis; no 10 percent additional tax applies because the conversion is a listed exception.

Gold IRA Tax Reporting Guide for CPAs and Tax Preparers

Q: Does a trustee-to-trustee IRA-to-IRA transfer generate any tax form?

No. The IRS Instructions for Forms 1099-R and 5498 direct custodians not to report a trustee-to-trustee transfer between two IRAs of the same type (traditional-to-traditional or Roth-to-Roth) that is not a SIMPLE IRA. No Form 1099-R is issued and no rollover contribution is reported on Form 5498. A rollover from an employer plan such as a 401(k) into an IRA is different: the plan administrator issues a Form 1099-R with Box 7 code G, and the receiving IRA custodian reports the rollover on Form 5498 Box 2.

Q: What are the most common preparer mistakes with a gold IRA client?

Common preparer mistakes include: treating a code G 1099-R as taxable when Box 2a is zero, omitting Form 8606 in a nondeductible contribution year, forgetting the pro-rata rule when the client has both pre-tax and after-tax IRA balances at Roth conversion, mishandling the FMV of an in-kind distribution by using cost rather than the reported Box 1 amount, missing an RMD flagged on Form 5498 Box 11, and failing to reconcile a 60-day indirect rollover on Form 1040 line for rollovers. Reviewing every Form 5498 and 1099-R against the account statement each year prevents most of these.

Q: Does the collectibles rule under IRC 408(m) affect what appears on the tax forms?

Not directly. IRC 408(m)(3) exempts specific bullion coins and metals meeting fineness requirements from the collectible-acquisition rule that would otherwise treat the purchase as a taxable distribution. If a self-directed IRA buys IRS-approved metals through a qualified trustee, the acquisition is not a deemed distribution and nothing appears on Form 1099-R at that time. If the account holds a non-approved metal, the acquisition itself is treated as a distribution and would be reported on Form 1099-R with the FMV as the taxable amount. Preparers should confirm at intake that every metal held qualifies under IRC 408(m)(3).

By Goldiew Research & Editorial · Last reviewed: August 1, 2026 · 14 min read

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A self-directed gold IRA generates the same information returns as any other IRA: Form 5498 from the custodian for contributions, rollovers, conversions, and year-end fair market value, and Form 1099-R in any year with a distribution of $10 or more. Where preparers get in trouble is the physical-metal wrinkle: FMV on in-kind distributions, the collectibles carve-out under IRC 408(m)(3), and basis tracking. This guide walks through every form a CPA is likely to see, the boxes that carry the tax weight, and the common preparer mistakes.

Preparer disclaimer. This guide describes federal information-reporting rules as published by the IRS. It is not tax, investment, or legal advice for any specific engagement. Verify the current-year IRS Instructions for Forms 1099-R and 5498 and Form 8606 before relying on any code, box, or scenario. Circular 230 responsibilities remain with the preparer of record.

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Quick Answer

Same forms as any IRA, plus one FMV question the custodian answers for you

A gold IRA client’s tax file each year should contain: Form 5498 from the custodian (contributions, rollovers, Roth conversion amount, year-end FMV in Box 5, RMD indicator in Boxes 11 and 12), any Form 1099-R the custodian or a distributing plan issued (Box 1 gross, Box 2a taxable, Box 4 withholding, Box 7 distribution code), and Form 8606 for the taxpayer if there was a nondeductible contribution, a Roth conversion, or a Roth distribution. The custodian is responsible for FMV; the preparer is responsible for pro-rata basis, code interpretation, and reconciling the two forms against the client’s records.

The annual reporting picture: which forms, from whom, by when

The same three forms carry the annual tax picture as any other IRA. What changes: the source of the FMV number in Box 5 of Form 5498 and the box that flags a physical-metal wrinkle at in-kind distribution.

Form	Issued by	To participant	To IRS
Form 5498	IRA custodian	May 31 (FMV statement by January 31)	May 31
Form 1099-R	Custodian or distributing plan	January 31	Late February (paper) / Late March (electronic)
Form 8606	Taxpayer with Form 1040	Not applicable	With Form 1040

Buying and selling metals inside the IRA through the custodian is not a reportable transaction; only distributions out of the IRA generate a 1099-R. Form 1099-B applies only if the client sold metals outside the IRA in a taxable account.

Form 5498: what the custodian reports on the receiving side

Form 5498 is the custodian’s annual snapshot. Because it is filed after the April 15 deadline, the participant often receives it after the return is filed. Ask for the prior-year Form 5498 at intake and check it against the return already filed.

Box	What it reports
Box 1: IRA Contributions	Regular annual traditional IRA contributions. Match against the client’s records.
Box 2: Rollover Contributions	Amounts rolled in from a qualified plan, 403(b), 457(b), or another IRA. The receiving-side echo of a Form 1099-R code G.
Box 3: Roth IRA Conversion Amount	Amounts converted from a traditional, SEP, or SIMPLE IRA into this Roth IRA. Feeds Form 8606 Part II.
Box 5: FMV of Account	Year-end fair market value. For a physical-metal IRA, typically December 31 spot price with a coin or bar premium adjustment. Drives the following year’s RMD.
Box 7: IRA Type Checkbox	Identifies the account as IRA (traditional), SEP, SIMPLE, Roth IRA, Roth SEP IRA, or Roth SIMPLE IRA.
Box 10: Roth IRA Contributions	Regular annual Roth IRA contributions. Check against the client’s MAGI-based Roth eligibility.
Box 11: RMD for Following Year	Checkbox: ticked if an RMD is required for the following calendar year. A checked Box 11 with an omitted RMD is a preparer red flag.
Boxes 12a / 12b: RMD Date and Amount	Following year’s RMD deadline (12a) and calculated amount (12b), if the custodian offers RMD calculation.
Boxes 15a / 15b: FMV of Certain Specified Assets	For hard-to-value assets with a two-character type code. IRS-approved bullion typically has an ascertainable FMV via spot plus premium, so this box may not be used.

Preparer scenario. A February statement shows $184,200 as the year-end value; the May Form 5498 shows $187,650 in Box 5. The $3,450 difference is the custodian’s premium adjustment on IRS-approved coins versus December 31 spot. Use the Form 5498 figure for the following year’s RMD, not the statement number.

The Form 5498 explainer walks through each box in detail with worked examples for rollovers, conversions, and repurposed after-tax rollovers.

Form 1099-R: what the custodian reports on the distributing side

Any time an IRA makes a distribution of $10 or more, the custodian issues Form 1099-R. Preparers should read five boxes carefully.

Box	What it reports
Box 1: Gross Distribution	Total distribution before withholding. For in-kind metal, the FMV of the metal on the distribution date.
Box 2a: Taxable Amount	Portion of Box 1 subject to federal income tax. Equals Box 1 for a traditional IRA with no basis; zero for a direct rollover with Box 7 code G.
Box 2b: Taxable Not Determined / Total Distribution	Two checkboxes. Custodians frequently check “Taxable amount not determined” for IRA distributions and Roth conversions.
Box 4: Federal Income Tax Withheld	IRA cash distributions default to 10 percent unless the participant elected otherwise. A direct rollover has no mandatory withholding.
Box 7: Distribution Code(s)	One or two codes. Common gold IRA codes: 1, 2, 4, 7, G, and Roth codes J, Q, T.

The full Box 7 walkthrough lives in the 1099-R distribution codes guide. The four codes that cause the most preparer misreads: Code 1 (early, no known exception, but the participant may still claim a section 72(t) exception on Form 5329); Code 2 (early, exception applies, includes Roth conversions under 59½); Code 4 (death distribution, no 10 percent additional tax, independent of the SECURE Act 10-year rule); and Code G (direct rollover, Box 2a is zero, and treating it as taxable is the single most common preparer error on rollovers).

Form 8606: basis, conversions, and Roth distributions

Form 8606, Nondeductible IRAs, is filed by the taxpayer (not by the custodian). Per the IRS, it is required to report:

Nondeductible contributions to traditional IRAs.
Distributions from traditional, SEP, or SIMPLE IRAs, if the taxpayer has ever made nondeductible contributions.
Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs.
Distributions from Roth IRAs.

A self-directed gold IRA does not change any of these rules. Form 8606 tracks after-tax basis, and basis is aggregated across all of the taxpayer’s traditional IRAs (including SEP and SIMPLE) for the pro-rata calculation. That is the trap: a client may hold two IRAs, one brokerage traditional IRA with only pre-tax money and one self-directed gold IRA that received a rollover of after-tax 401(k) basis. On any conversion or distribution, the taxable ratio is computed across both accounts, not just the account that made the distribution.

Preparer scenario. A client has $92,000 in a brokerage traditional IRA (all pre-tax) and $18,000 in a self-directed gold IRA that received a $6,000 after-tax basis rollover. The client converts $20,000 from the brokerage IRA to a Roth IRA. Even though the basis sits in the gold IRA, Form 8606 Part I aggregates basis across all traditional IRAs. The pro-rata calculation applies $6,000 basis over $110,000 total to the $20,000 conversion: roughly $1,091 return of basis, $18,909 taxable.

The perpetual basis file. Form 8606 basis carries forward indefinitely on line 14. Losing a prior-year Form 8606 costs the client money at conversion. At intake, request every prior Form 8606 and reconstruct missing years from Form 1040 copies.

FMV reporting for physical metals

The custodian, not the preparer, is responsible for reporting year-end FMV in Form 5498 Box 5 and distribution-date FMV in Form 1099-R Box 1. The IRS instructions direct the payer to include the fair market value of property on the date of distribution. For physical bullion, custodians typically use the spot price on the relevant date, sometimes with a coin or bar premium adjustment for IRA-approved coins that trade above spot. Use the custodian’s number on the return, not the client’s spreadsheet or a dealer buyback quote. If the client disputes the FMV, the remedy is a corrected Form 5498 or 1099-R from the custodian, not an adjustment on the return.

In-kind distributions: the common preparer trap

An in-kind distribution moves physical metal out of the IRA into the participant’s personal possession. Instead of the custodian selling the metal and wiring cash, the depository ships the coins or bars to the participant (or a segregated storage account outside the IRA wrapper). Two things happen at once: a taxable IRA distribution, and the creation of a personal capital asset.

In-kind distribution reporting sequence

Step 1: Form 1099-R (issued by custodian). Box 1 shows the FMV of the metal on the distribution date. Box 2a shows the same FMV for a traditional IRA with no basis, or a pro-rata portion for an IRA with basis. Box 7 carries the age-and-exception code: 7 at 59½ or older, 4 for a death distribution, 3 for disability, 1 or 2 if under 59½.

Step 2: Form 1040 (filed by taxpayer). The Box 2a amount flows through to the taxable IRA distribution line. Form 5329 handles the 10 percent additional tax and any section 72(t) exception the custodian did not code. Form 8606 handles basis recovery if any basis exists.

Step 3: New cost basis for future personal sale. The FMV reported in Form 1099-R Box 1 becomes the participant’s cost basis in the metal for any subsequent personal sale outside the IRA. That subsequent sale is a taxable event separate from the IRA distribution, taxed under the collectibles rules covered in the collectibles tax comparison.

Preparer scenario. A 68-year-old client takes an in-kind distribution of 40 American Gold Eagle 1-ounce coins in October. The custodian reports $105,600 in Box 1 (spot $2,640 per ounce on distribution date), $105,600 in Box 2a, code 7 in Box 7. Client reports $105,600 as ordinary income; no additional tax. Eighteen months later, client sells 10 coins for $28,500: gain is $28,500 minus $26,400 basis = $2,100 long-term collectibles gain, taxed up to 28 percent under IRC 1(h)(4).

The IRC 408(m)(3) collectibles carve-out and what it means at intake

IRC 408(m) generally treats the acquisition of a collectible by an IRA as a taxable distribution of the purchase amount. IRC 408(m)(3) creates an exception for specific bullion coins and bullion meeting minimum fineness (0.995 for gold bars, 0.9999 for palladium, and so on) if held by a bank or an IRS-approved nonbank trustee. This is why a self-directed gold IRA can hold American Gold Eagles and refined bars: the acquisition is not a deemed distribution and nothing appears on Form 1099-R at purchase.

Intake question that saves a return. For any new gold IRA client, ask the custodian for a list of every metal held and confirm each qualifies under IRC 408(m)(3). If a non-qualifying item is discovered, the acquisition should have been reported as a deemed distribution on Form 1099-R for the year of purchase; sort that out with the custodian before filing. See Cornell LII text of IRC 408 for the statutory language.

Common preparer mistakes with a gold IRA client

Six errors that account for most gold IRA return corrections

Treating a code G 1099-R as taxable. Code G is a direct rollover; Box 2a is zero. The Box 1 amount flows through as a tax-free rollover, not income.
Omitting Form 8606 in a nondeductible contribution year. Basis that never appears on Form 8606 line 14 disappears from the file. At subsequent conversion or distribution, the client pays tax again on basis that was never deducted. Fix by filing a delinquent Form 8606 for each missed year.
Ignoring the pro-rata rule at Roth conversion. Form 8606 Part I aggregates basis across every traditional, SEP, and SIMPLE IRA the taxpayer owns. Isolating a “clean” conversion from one account while another holds mixed money is a common misconception.
Using cost instead of Box 1 FMV for an in-kind distribution. The taxable distribution is the reported FMV on the distribution date, not what the client paid for the coins. Cost matters as basis on the subsequent personal sale, not on the IRA distribution.
Missing a Box 11 RMD flag. Form 5498 Box 11 is checked when an RMD is due for the following year. A missed RMD triggers the SECURE 2.0 excise tax (25 percent, reduced to 10 percent if corrected within the two-year window and Form 5329 is filed).
Not reconciling a 60-day indirect rollover. An indirect rollover shows an ordinary code (1, 2, or 7 by age), not code G. The preparer must mark the amount as “Rollover” on the Form 1040 IRA distributions line so the taxable portion excludes the rolled amount.

A tax-season workflow for a gold IRA client

Intake (November-January). Confirm the custodian, request the prior-year Form 5498, verify every metal qualifies under IRC 408(m)(3), and request every prior Form 8606 (reconstruct from tax-return copies if missing).
1099-R review (February). Read Box 1, 2a, 4, 7. Flag every code G for the zero-Box-2a check, every code 1 for a possible section 72(t) exception, every in-kind distribution for the personal-basis workbook.
Return preparation (March-April). Enter 1099-R amounts, apply the Form 8606 pro-rata calculation if any basis exists, mark indirect rollovers, file Form 5329 for any additional tax or exception.
Form 5498 reconciliation (May-June). Reconcile Boxes 1, 2, 3, and 10 against the return. Save Box 5 FMV for the following year’s RMD and note the Box 11 status.

One coordinated option for a gold IRA rollover: Augusta Precious Metals

A preparer’s role during a rollover is usually to ensure clean paperwork at the receiving side, not to recommend a specific dealer. Augusta Precious Metals is one option a preparer might see at intake. Augusta holds a BBB A+ rating (BBB: Augusta Precious Metals) and pairs new accounts with a salaried, non-commissioned educator plus a coordinated custodian and depository. Named Money Magazine’s Best Overall Gold IRA Company for 2022 through 2026 and Investopedia’s Most Transparent Gold IRA Company over the same period. The practical value for the preparer: the custodian’s Form 5498 and any Form 1099-R still come from the IRA custodian, and coordinated trustee-to-trustee transfer sequencing reduces the risk of an accidental 60-day indirect rollover. Industry-reported minimum investment is around $50,000; current terms are reviewed during the free consultation. Past performance is not a guarantee of future results.

Frequently asked questions

Which forms should a CPA expect from a gold IRA client?

Form 5498 from the custodian every year, Form 1099-R in any year with a distribution of $10 or more, and Form 8606 filed by the taxpayer if the year involved a nondeductible contribution, a Roth conversion, or a Roth distribution.

How is FMV reported for physical metals inside the IRA?

The custodian reports year-end FMV on Form 5498 Box 5 (typically spot price on December 31, sometimes with a coin premium adjustment) and distribution-date FMV on Form 1099-R Box 1 for in-kind distributions. The custodian’s number is authoritative for return purposes.

Does a trustee-to-trustee IRA-to-IRA transfer generate any form?

No. A same-type IRA-to-IRA transfer is not reported. A rollover from an employer plan into an IRA is different and generates Form 1099-R with Box 7 code G plus Form 5498 Box 2 on the receiving side.

When is Form 8606 required for a gold IRA client?

The same four situations as any IRA: nondeductible contributions to a traditional IRA, distributions from a traditional/SEP/SIMPLE IRA once nondeductible contributions have ever been made, Roth conversions, and Roth IRA distributions.

How is an in-kind metal distribution treated on the return?

The FMV on the distribution date (Form 1099-R Box 1) flows through as taxable income, subject to Box 7 coding. That FMV becomes the participant’s cost basis for any subsequent personal sale, taxed as a separate event under the collectibles capital-gain rules.

What are the most common preparer mistakes with a gold IRA client?

Treating a code G 1099-R as taxable, omitting Form 8606 in a nondeductible contribution year, missing the pro-rata rule at Roth conversion, using cost instead of Box 1 FMV for an in-kind distribution, missing a Box 11 RMD flag, and failing to reconcile a 60-day indirect rollover.

Is Form 5498 needed to file the return?

Form 5498 is not attached to Form 1040. Review it to confirm contributions, rollovers, conversions, year-end FMV, RMD status, and account type; resolve discrepancies with the custodian before filing because the IRS matches Form 5498 against the return.

How is a Roth conversion of a traditional gold IRA reported?

The distributing custodian issues Form 1099-R with the gross amount in Box 1 and Box 2a, Box 7 code 2 (under 59½) or code 7 (59½ or older); no dedicated conversion code exists. The receiving Roth custodian reports it on Form 5498 Box 3. The taxpayer files Form 8606 Part II with the pro-rata calculation.

Does IRC 408(m) affect what appears on the forms?

Not directly if every metal qualifies under IRC 408(m)(3). If a non-qualifying item is held, the acquisition should have been reported as a deemed distribution on Form 1099-R for the year of purchase.

Sources

IRS. “Instructions for Forms 1099-R and 5498.” https://www.irs.gov/instructions/i1099r. Accessed July 2026.
IRS. “About Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc.” https://www.irs.gov/forms-pubs/about-form-1099-r. Accessed July 2026.
IRS. “About Form 5498, IRA Contribution Information.” https://www.irs.gov/forms-pubs/about-form-5498. Accessed July 2026.
IRS. “About Form 8606, Nondeductible IRAs.” https://www.irs.gov/forms-pubs/about-form-8606. Accessed July 2026.
IRS. “About Form 5329, Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts.” https://www.irs.gov/forms-pubs/about-form-5329. Accessed July 2026.
IRS. Publication 590-A: Contributions to Individual Retirement Arrangements. https://www.irs.gov/publications/p590a. Accessed July 2026.
IRS. Publication 590-B: Distributions from Individual Retirement Arrangements. https://www.irs.gov/publications/p590b. Accessed July 2026.
IRS. “Rollovers of Retirement Plan and IRA Distributions.” https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions. Accessed July 2026.
Cornell Law School Legal Information Institute. 26 U.S. Code Section 408: Individual Retirement Accounts. https://www.law.cornell.edu/uscode/text/26/408. Accessed July 2026.
Cornell Law School Legal Information Institute. 26 U.S. Code Section 72: Annuities; certain proceeds of endowment and life insurance contracts. https://www.law.cornell.edu/uscode/text/26/72. Accessed July 2026.
Cornell Law School Legal Information Institute. 26 U.S. Code Section 1(h): Maximum capital gains rate. https://www.law.cornell.edu/uscode/text/26/1. Accessed July 2026.
BBB. Augusta Precious Metals business profile. https://www.bbb.org/us/ca/beverly-hills/profile/gold-silver-coins-and-bullion/augusta-precious-metals-1216-482414. Accessed July 2026.
FINRA. “Precious Metals.” Investor Insights. https://www.finra.org/investors/insights/precious-metals. Accessed July 2026.

This guide is reviewed and updated quarterly to reflect changes in IRS rules, partner offers, and company policies. For questions, corrections, or to report inaccuracies, contact our editorial team via the contact page.

Last reviewed: August 1, 2026

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