Federal law treats gold as a collectible, and the IRS says IRA funds cannot be invested in collectibles.
An IRA that buys collectibles is treated as having distributed the money in the year it was invested, and a 10% additional tax may apply to early distributions.
Gold IRAs exist because Section 408(m)(3) of the tax code carves out exceptions. Three conditions decide whether a purchase falls inside them, and a dealer’s brochure does not change any of the three.
Interest in the metal is high. Investors pushed gold fund holdings to a record in September 2026, even with gold well below its January peak.
Coins must fall into one of two groups
For coins, the IRS says the exception covers certain gold, silver or platinum coins described in the federal law on U.S. coinage. It also covers any coin issued under state law.
Those are the only two coin categories the exception names. A shop’s description of a coin as rare or collectible does not place it in either one.
Bars must meet a purity standard
Gold, silver, platinum and palladium bullion can qualify if its fineness equals or exceeds the minimum fineness a commodities exchange requires for metal delivered under a futures contract. Fineness is purity, usually stated in parts per thousand.
The IRS page does not list a number, so ask the dealer to name the standard each bar meets and to put it in writing.
A bank or approved trustee has to hold it
Bullion qualifies only if a bank or an IRS-approved nonbank trustee keeps physical possession of it. Metal kept in a home safe does not meet that condition, and the same requirement applies when an IRA-owned LLC buys the bullion.
If you’re weighing a precious metals IRA, the third condition is where a specialist helps. You can diversify with physical gold and silver, and a gold or silver IRA from Anthem Gold Group can make them part of your retirement in a tax-advantaged way.
Request the free guide, which has no obligation, and leave a phone number you will actually answer.
Questions to settle before any metal is bought
- Which products are on the purchase list, and which part of Section 408(m)(3) covers each one?
- Who is the trustee, and where will the metal be held?
- What are all the costs in writing: setup, annual and storage fees, plus the gap between what you pay and what a buyer would pay you?
Gold held outside an IRA plays by different rules. The old jewelry in a drawer, for example, is taxed as a collectible, with long-term gains taxed at up to 28%.
Getting the three IRA conditions answered on paper first keeps a retirement purchase from being reclassified as a withdrawal.
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