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BattalionAIMarket Intelligence

Field Manual · Educational

How a gold IRA works

A "gold IRA" is a self-directed individual retirement account that holds physical precious metals instead of (or alongside) stocks and funds. The tax treatment is the same as a regular IRA; the plumbing is different.

The three parties

  • Custodian. An IRS-approved trustee that administers the account and files the paperwork. You cannot hold IRA metals yourself; the custodian holds title on the account's behalf.
  • Depository. An approved vault that stores the metal. Storage may be "segregated" (your specific bars) or "commingled" (equivalent metal). Segregated usually costs more.
  • Dealer. Sells the metal into the account. The dealer is separate from the custodian, and you can usually choose each independently.

What metal qualifies

US tax law sets minimum purities for IRA metals: gold .995, silver .999, platinum and palladium .9995. American Gold Eagles are a specific exception and qualify despite being 22-karat. Most sovereign bullion coins and accredited-refiner bars qualify; collectibles, proofs with numismatic premiums, and jewelry generally do not. The custodian will confirm eligibility before purchase.

Funding the account

  • Rollover from an existing 401(k) or IRA, done custodian-to-custodian to avoid tax withholding and the 60-day deadline.
  • Transfer between IRAs of the same type.
  • Contribution within the annual IRA limit.

Costs to ask about

  • Account setup and annual custodian fees.
  • Storage and insurance, flat or as a percentage of value.
  • The dealer's premium over spot on the way in, and the buyback spread on the way out. See what a fair premium looks like.
  • Wire and shipping fees, and any fee to take a distribution in metal rather than cash.

Things people are surprised by

  • You cannot store IRA metal at home. "Home storage IRA" promotions conflict with the custody rules.
  • Required minimum distributions still apply to traditional IRAs. You may need to sell metal or take it in kind.
  • Physical metal pays no dividend or interest, so account growth comes only from price change, net of fees.
  • High-pressure sales tactics and "free silver" offers are common in this niche. The metal is never free; the cost is in the premium.

Questions to ask before moving retirement money

  1. What are the total first-year and ongoing fees, in dollars, for my account size?
  2. Which custodian and depository, and are they independent of the dealer?
  3. What is the buyback price today for the exact products being sold?
  4. Can I see a written fee schedule and an itemized invoice before funding?

Educational only. This is not tax, legal, or financial advice; consult a licensed advisor and a tax professional before any rollover. Battalion AI is an independent project, not affiliated with Battalion Metals or any dealer, and does not sell or recommend any product.