Can You Rollover a Roth IRA into a Precious Metals IRA? SDIRA Rules for Gold, Silver, Platinum, and Palladium
Yes — you can roll over most retirement accounts into a precious metals IRA holding physical gold, silver, platinum, or palladium. Each metal has IRS-specific fineness requirements. All metals must be stored at an IRS-approved depository — not at home. The precious metals IRA is a self-directed IRA structure with the same prohibited transaction rules as all SDIRAs.
1What is a Precious Metals SDIRA?
Precious metals in an IRA refers to physical gold, silver, platinum, and palladium coins and bars held within a self-directed IRA structure. Each metal has specific IRS purity requirements established under IRC Section 408(m)(3), enacted by the Taxpayer Relief Act of 1997.
Physical precious metals cannot be held in standard brokerage IRAs (Fidelity, Schwab, Vanguard). A self-directed IRA custodian authorized under IRC Section 408(a) is required. The custodian takes legal title to the metals; the metals are stored at an IRS-approved depository.
2Roth IRA Rollover Considerations
Roth IRA to Roth Precious Metals SDIRA: tax-free transfer. All future appreciation is permanently tax-free. Most efficient structure for long-term precious metals accumulation.
3Prohibited Transactions (IRC 4975)
Standard IRC Section 4975 rules apply. Most relevant for precious metals: the account holder cannot take personal possession of IRA-owned metals. Additionally, transactions between the IRA and a disqualified precious metals dealer (one in which the account holder has a financial interest) are prohibited.
Strictly Prohibited
- Storing IRA-owned precious metals at home (any arrangement)
- Taking physical delivery of IRA metals as 'temporary' storage
- Purchasing metals from a dealer the account holder owns
- Using IRA metals as collateral for personal loans
Legally Permitted
- Purchasing IRS-approved coins and bars from independent dealers
- Storing at IRS-approved depositories (Delaware Depository, Brinks, IDS)
- Distributing metals in-kind as RMDs (taxable at fair market value)
- Selling metals within the IRA and redeploying proceeds into other IRA assets
4Rollover Process Mechanics
Open a precious metals SDIRA with a specialized custodian (Equity Trust, Directed IRA, Kingdom Trust, GoldStar Trust)
Fund via direct rollover from the source plan — cash arrives at the SDIRA
Select specific IRS-approved metals and obtain price quotes from custodian-approved dealers
Submit an Investment Direction Letter authorizing the custodian to purchase specific metals
The custodian executes the purchase; the dealer ships directly to the IRS-approved depository
The depository issues a confirmation of receipt and storage; account holder receives account statement
5Cost & Fee Structure
Setup Cost
$50–$150 one-time
Charged initially by the custodian.
Annual Fees
$75–$300/year
Recurring maintenance expense.
Transaction Cost
Variable per item
Charged per asset interaction.
6Tax Implications
All distributions from a traditional Precious Metals SDIRA are ordinary income — regardless of the metal type. Physical precious metals held outside an IRA are subject to the 28% collectibles capital gains rate on long-term gains — potentially lower than the ordinary income rate for investors in higher brackets.
📈 Roth Interaction Advantage
A Roth Precious Metals SDIRA converts all appreciation to permanent tax-free income, outperforming both the ordinary income rate and the 28% collectibles rate on personal metal holdings.
7Common IRS Pitfalls
Accepting a home storage Gold IRA from any promoter
Home storage of IRA precious metals is not IRS-compliant regardless of the LLC or trust structure used to market it. McNulty v. Commissioner (2021) is unambiguous. Any promoter marketing a home storage or 'checkbook IRA stored at home' arrangement is selling a structure that has been definitively ruled non-compliant. The full IRA value becomes taxable income in the year metals are moved to home storage.
Not comparing the dealer's quoted price to live spot price before purchasing
Live spot prices for all four metals are available at kitco.com. Any dealer who quotes a price for IRA metals without disclosing the premium over spot is operating non-transparently. A competitive dealer will clearly state: 'spot price is $X, our premium is Y%, your total price per ounce is $Z.' This calculation takes 30 seconds. Skipping it can result in paying 10–20% over spot — an immediate 10–20% unrealized loss on the position.
Concentrating most or all retirement savings in a precious metals IRA
Precious metals do not generate income — they produce only price appreciation (or depreciation). A retiree with $400,000 entirely in a Gold IRA receives no dividends, no interest, and no rental income. All distributions come from selling metal — creating sequence-of-returns risk if gold prices are depressed at the time distributions are needed. Precious metals should be a diversifying allocation within a broader retirement portfolio — not the entire portfolio.
8Frequently Asked Questions
What precious metals are allowed in an IRA?
The IRS permits gold (99.5% minimum purity), silver (99.9% minimum), platinum (99.95% minimum), and palladium (99.95% minimum) in IRAs under IRC Section 408(m)(3). American Gold Eagles are the only exception to the fineness rules — they are 22-karat but explicitly authorized by statute. Each metal must be held at an IRS-approved depository. Home storage is not permitted.
What is the difference between a precious metals IRA and buying precious metals ETFs?
A precious metals IRA holds actual physical metals in an IRS-approved depository through a self-directed IRA custodian — total annual costs of $225–$600 plus a dealer premium on purchase. Precious metals ETFs (GLD, IAU, SLV) track metal prices and can be held in any standard IRA at Fidelity, Schwab, or Vanguard — expense ratios of 0.10–0.60% with no storage fees or dealer premiums. The SDIRA structure provides actual metal ownership; ETFs provide price exposure. For most investors, ETFs achieve the diversification goal at significantly lower cost.
Can I take delivery of my IRA gold when I retire?
Yes — you can take an in-kind distribution of your IRA metals when you retire or at any time after age 59½. The distribution is taxable at the fair market value of the metals on the distribution date (for a traditional IRA). The custodian arranges for the depository to release the metals to you. This is called an in-kind distribution — the physical metal is delivered to you, and the value is reported as taxable income on Form 1099-R.