Can I Take Physical Possession of Gold in My IRA?

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Diversifying with precious metals is a great way to hedge against inflation and market crises, but you may still have questions about the technical aspects of acquiring physical gold and silver. One of the most common questions we get is “Can I take possession of the gold in my Gold IRA?”, the answer is yes – and taking distributions from your Gold IRA is a simple process.

Can I take possession of gold in my IRA?

Yes, you have two options when you take distributions from your physical Gold IRA: You can either take physical possession of your metals or liquidate your assets and receive their value in cash instead. Taking distributions before the age of 59.5 from your gold IRA would mean a 10% penalty, but the choice is always yours.

We’ve taken the time to create a simple process that allows you to liquidate your Gold IRA when you’re ready. We are dedicated to your financial success and peace of mind. We also care about your time. We’ve had clients who urgently needed to liquidate their assets, and we worked with them to ensure that they were able to get their money quickly and securely.

How to take possession of gold in your Gold IRA

If you want to receive physical gold as a distribution from your Gold IRA, there are only three simple steps:

1. Contact your Senior Portfolio Manager and request a distribution. 

2. We will help you complete the distribution request form required by your custodian. 

3. We will submit the document you approved with your signature to your custodian. 

It will only take approximately 7 business days from the moment your place your request to the time your gold is delivered securely to your door.

How do I turn my Gold IRA into cash

If you want to take a distribution in cash, we will be happy to offer you a fair buy-back price based on our written policy and a hassle-free 3-step process.

1. Confirm your request to liquidate your gold to cash. 

2. Accept our buy-back offer.*

3. Complete the form required by your custodian and get paid.

* While the law prohibits us from guaranteeing that we will buy back from our clients, we have never refused any client request to sell their metals back to us. 

What does the IRS say about storing your Gold IRA assets at home?

If you purchase and hold physical gold outside of a Gold IRA, you can store them in a home safe. However, the IRS strictly prohibits holding gold, silver, and other physical precious metals in a home safe if they are part of a Gold IRA. The IRS code states that these metals must be “in the physical possession of a trustee.” Section 408(m) of the IRS code further defines which types of precious metals you can purchase as part of a self-directed Gold IRA.

On its FAQ page, the IRS explains this in greater detail: “Gold and other bullion are ‘collectibles’ under the IRA statutes, and the law discourages the holding of collectibles in IRAs. There is an exception for certain highly refined bullion provided it is in the physical possession of a bank or an IRS-approved nonbank trustee.”

The fact that you cannot store physical precious metals at home when they are part of a Gold IRA is backed by the Industry Council for Tangible Assets, who is an industry watchdog. In 2018, they released a white paper called “The Prohibition on Home Storage of Bullion Held in an IRA.”

What are the penalties or additional taxes for incorrectly opening a home storage Gold IRA?

If you don’t comply with IRS rules for proper storage of your IRA precious metals, you may face consequences. According to precious metals expert Jeffrey M. Christian:

“This is a big risk to individual investors. You may face taxes, penalties, and fees on your entire IRA should the IRS decide to call you on your self-storage of precious metals…They know it is a violation that they can pursue whenever they want to.”

Those who break IRS rules for storing IRA precious metals and choose to keep their IRA-purchased gold at home without following the proper steps could face distribution penalties because having your gold at home is considered a distribution, and, if taken too soon, you could face a 10% penalty.

Your contributions could also risk loss in that they will no longer be tax-deferred. This means that you’ll owe income taxes on the “distribution,” which can be a large amount of money if you aren’t storing your metals correctly.

But it doesn’t end there. Holding your IRA gold in your home could also lead to an invasive IRS audit. If the findings of the audit show improper account activity, you may even face additional fines and penalties.

Why are so many people confused about home storage Gold IRAs?

The main reason we see so much confusion about home storage Gold IRAs is the deceptive ads that pop up, showing people that they can hold their gold in a safe at their house. This misinformation can get those seeking gold in trouble with the IRS, and it can harm their retirement savings accounts.

These deceptive “Home Storage” ads add even more confusion to the mix because they show visuals of people keeping gold bars in safes that fit in their homes.

It’s important to note that having your gold buried in the backyard or kept in a safe in your basement is technically considered a distribution, and if you’re under 59.5 years old, that will be considered an early withdrawal, which could come with a 10% penalty.

How can I sell my gold after I’ve taken possession of it?

There are many different options for liquidating the metals that you have on hand. When selling precious metals outside of your IRA (or metals that you hold in your home or other safe location), we hope that you consider Gold Alliance. There are thousands of dealers that can assist you, but we provide an industry-leading buy-back policy.

All you have to do is call us, and we will provide you with a fair buy-back offer. Once you accept our offer, we will help you get your metals shipped safely to our account at the Delaware Depository and transfer the funds to you once your metals arrive. Your price is locked during your metals’ transit. 

Start protecting your purchasing power today

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