Gold in an IRA or 401(k)

US law treats metals and coins bought by an IRA as 'collectibles', which counts as a taxable distribution, except for American Eagle coins, state-issued coins, and high-fineness gold, silver, platinum and palladium bullion held by the trustee. The Tax Court's McNulty decision (2021) shows that keeping IRA metal at home can trigger tax and penalties.

Facts checked 26 October 2026 · Not financial, legal or tax advice

Traditional and Roth IRA (including self-directed IRAs)

What is allowed: Gold is a 'collectible' under 26 U.S.C. 408(m)(2) unless an exception applies. The exceptions in 408(m)(3) cover certain US gold coins (31 U.S.C. 5112(a)(7)-(10), the American Eagle gold coins), coins issued under the laws of a US state, and gold bullion at least as fine as a regulated futures contract requires, if the bullion is in the physical possession of the IRA trustee. Gold that does not qualify is treated as a distribution when the IRA buys it.

Storage: Bullion qualifies only if it is in the physical possession of a trustee: a bank or another person the IRS approves (408(a)(2), 408(m)(3)). In McNulty v. Commissioner, 157 T.C. No. 10 (2021), the Tax Court held that American Eagle coins bought by an IRA-owned LLC and kept in the owner's home safe were taxable distributions. The court rejected the argument that the trustee-custody rule applies only to bullion and not to the coins.

Tax: An IRA is generally exempt from tax (408(e)(1)). If an IRA buys a collectible, the cost is treated as a distribution. The IRS says this is generally taxed as ordinary income, the 10% additional tax may apply under age 59 1/2, and the owner then has basis in that amount. A prohibited transaction can end IRA status from the first day of that tax year (408(e)(2)).

Watch out for:

Keeping IRA coins or bars at home, even through an IRA-owned LLC, led to taxable distributions and accuracy-related penalties in McNulty (2021).
Coins not listed in 408(m)(3)(A) count as collectibles unless they qualify as bullion under 408(m)(3)(B); bullion below the futures-contract fineness is a collectible. Buying a collectible is a deemed distribution.
Buying a collectible for the personal use of a disqualified person may also be a prohibited transaction under IRC 4975(c), per the IRS.
IRAs cannot invest in life insurance contracts (408(a)(3)).

401(k) and other employer plans with participant-directed accounts

What is allowed: The collectibles rule in 408(m) also applies to an 'individually-directed account' under a plan described in section 401(a). The IRS says the same coin and bullion exceptions apply. Whether a plan offers metals at all is up to the plan's investment menu.

Storage: For metals in individually directed accounts, the IRS says bullion is excluded from collectibles only if a bank or approved non-bank trustee keeps physical possession of it.

Tax: Buying a collectible in an individually directed account is treated as a distribution equal to its cost; the IRS says this is generally taxed as ordinary income and the 10% early-withdrawal tax may apply.

Watch out for:

The 2026 DOL proposed rule was not confirmed as final at the time of research.

Other countries: UK · Canada · Australia · all countries

FAQ

Can I hold physical gold in an IRA?

Only certain items. 26 U.S.C. 408(m)(3) excludes from 'collectibles' some US gold coins (American Eagles), state-issued coins, and gold bullion meeting futures-contract fineness, if the bullion is in the physical possession of the IRA trustee. Other gold counts as a distribution.

Can I keep my IRA gold at home?

In McNulty v. Commissioner, 157 T.C. No. 10 (2021), the Tax Court treated American Eagle coins kept in the owner's home safe, through an IRA-owned LLC, as taxable distributions and upheld accuracy-related penalties.

What happens if an IRA buys a collectible?

The cost is treated as a distribution. The IRS says it is generally taxed as ordinary income, and the 10% additional tax may apply if the owner is under 59 1/2.

Sources (6)

General information from official sources, checked October 2026. Rules for retirement accounts are complex and change; check with your plan provider, a tax adviser or the tax authority before you invest. Not financial, legal or tax advice.