Buying gold in an IRA takes four steps: open a self-directed IRA with a qualified custodian, fund it by contribution, transfer, or direct rollover, direct the custodian to buy IRS-eligible bullion from a dealer, and have the metal ship to an insured depository. You approve trades and receive statements — you never take personal possession. The cost to watch is the dealer’s spread, reported at 2%–10% over spot.
Most gold IRA content covers whether to open one. This page covers the part that comes after: how money gets in, how metal gets bought, and where the costs hide along the way. The mechanics are the same at every dealer, which makes them a good yardstick for judging any particular one.
Funding the account
Three routes put money into a self-directed IRA:
- Transfer from an existing IRA. Trustee to trustee, no tax event, no deadline, no dollar cap, and no limit on frequency. The default for IRA money; details in Convert an IRA to Gold.
- Direct rollover from an employer plan. A 401(k), 403(b), or TSP moves by direct rollover with nothing withheld. The indirect alternative, where a check comes to you, starts a 60-day clock and a 20% withholding problem. Avoid it; the full comparison is in 401(k) to Gold IRA Rollover.
- New contributions. Capped at the annual IRA limit — $7,500, or $8,600 with the age-50+ catch-up for 2026, per irs.gov. Fine for topping up, too small to build a metals position quickly.
The purchase, in four steps
- Pick products with eligibility confirmed. Your dealer proposes; the statute disposes. Everything must clear the fineness floors in 26 U.S.C. § 408(m)(3)(B) or the American Eagle carve-out, and your custodian confirms eligibility before executing. The product lists are at IRA-Eligible Gold.
- Authorize the purchase. You sign a purchase authorization; the custodian wires funds from your IRA to the dealer. You never wire money personally, and a dealer asking you to is a stop sign.
- The dealer ships to the depository. Directly, under custodian instruction. The metal goes from the dealer’s vault to the depository’s vault without passing through your hands, which is what keeps McNulty v. Commissioner, 157 T.C. No. 10 (U.S. Tax Court, 2021) from becoming your problem.
- Confirm the paperwork. The custodian statement should list exact products, quantities, and the depository. Bar serial numbers on the invoice should match the statement. Boring, five minutes, worth it.
Where the money actually goes
The visible fees are the small part: typical ranges run $50–$200 to set up, $75–$300 a year for administration, and $100–$300 a year for storage (Gold IRA Custodians breaks these down).
The big cost is the spread: the dealer’s markup over the spot price when you buy, typically 2%–10% over spot depending on dealer and product. On a $50,000 purchase, the difference between a 3% and an 8% spread is $2,500, which is more than a decade of custodian fees. It is also the one number the sales process is built to keep out of writing. Ask for it per product, on paper. This single request does more for your outcome than every other step on this page combined.
Segregated or commingled
Depositories offer two storage modes. Segregated means your specific bars and coins sit in your own space; commingled means you own a claim on equivalent metal in a shared pool. Segregated typically costs more (reported around $150 versus $100 a year at several operators). Neither is wrong. What’s wrong is paying for one and not knowing which. It’s on the statement; check.
Exiting later
Selling reverses the flow: you instruct the custodian, the dealer or another buyer purchases, and the depository releases metal against payment. The price you get is spot minus the buyback spread, which is why we tell you to get buyback terms in writing on day one, while everyone still wants your business. After 73, required minimum distributions force this process onto a schedule for traditional accounts (Gold IRA Tax Rules).
Frequently asked questions
How do I fund a gold IRA?
Three ways: new cash contributions (capped at the annual IRA limit), a trustee-to-trustee transfer from an existing IRA (no tax, no deadline, no dollar cap), or a direct rollover from an employer plan like a 401(k). Most gold IRAs are funded by the second and third routes.
Do I ever handle the gold myself?
No, and you don’t want to. The dealer ships directly to an IRS-approved depository under your custodian’s instruction. Taking personal possession is a taxable distribution under the Tax Court’s McNulty decision.
How much above the gold price will I pay?
The dealer’s spread over spot is reported anywhere from 2% to 10% depending on dealer and product, and it is usually the largest cost in the whole arrangement. It’s also the number least likely to be volunteered. Ask for it per product, in writing, before ordering.
What should I check after the purchase?
Your custodian statement should show the exact products, quantities, and the depository holding them, and for bars, serial numbers on the invoice should match. Also confirm whether your storage is segregated or commingled, because you’re paying a different price for each.