Can I take physical delivery of my IRA gold and silver?

Yes. This is called an in-kind distribution. The fair market value of the metals on the distribution date is reported for tax purposes, and the physical metals are shipped to you via insured carrier. After delivery, the metals are your personal property outside the IRA.

What is the penalty for early withdrawal from a precious metals IRA?

If you are under age 59½ and do not qualify for an exception, the taxable portion of your distribution is subject to a 10 percent early withdrawal penalty in addition to regular income tax (for Traditional IRAs).

When do I have to start taking RMDs from my gold IRA?

For Traditional IRAs, RMDs must begin by April 1 of the year following the year you turn 73. Roth IRAs are not subject to RMDs during the original owner's lifetime.

How are precious metals IRA distributions taxed?

Traditional IRA distributions are taxed as ordinary income. Qualified Roth IRA distributions are tax-free. The tax treatment is the same whether you take cash or physical metals. See our tax rules guide for full details.

Can I satisfy my RMD with a physical gold distribution?

Yes. You can take an in-kind distribution of physical metals to satisfy your RMD. The fair market value of the metals distributed must meet or exceed your RMD amount for the year.

What happens if I miss an RMD?

The penalty for failing to take a required minimum distribution is 25 percent of the amount that should have been withdrawn. This penalty may be reduced to 10 percent if you correct the shortfall within two years.

Do I pay capital gains tax on gold in my IRA?

No. Capital gains are not separately taxed inside an IRA. Traditional IRA distributions are taxed as ordinary income regardless of how much the metals appreciated. Roth IRA qualified distributions are entirely tax-free, including all appreciation. Our IRA-eligible gold guide covers product selection for tax-advantaged accounts.

Precious Metals IRA Distributions: Rules, Options and Tax Implications

Understanding precious metals IRA distributions is essential for anyone holding physical gold or silver in a retirement account. Unlike a traditional stock-and-bond IRA where distributions are simply cash transfers, a precious metals IRA presents unique options—including taking physical delivery of your metals—along with specific rules governing when and how you can access your holdings. This guide covers required minimum distributions, in-kind delivery, age thresholds, early withdrawal penalties and the tax implications for both Traditional and Roth accounts so you can plan your gold and silver IRA distributions strategically.

How Precious Metals IRA Distributions Work

A distribution from a precious metals IRA follows the same fundamental rules as any other IRA distribution, with one important distinction: you can choose to receive your distribution in cash or in physical metal. This choice has practical, logistical and tax implications that every account holder should understand.

When you request a distribution, your custodian will present two options:

Cash distribution – The custodian sells the metals in your account at the current market price and sends you the cash proceeds (minus any applicable fees).
In-kind distribution (physical delivery) – The custodian arranges for the actual physical metals to be shipped to you from the depository via insured carrier. The distribution is valued at the metals' fair market value on the date of distribution for tax purposes.

Both options are legitimate distributions. The tax treatment is identical—the value of what you receive is taxable income (for Traditional IRAs) or tax-free (for qualified Roth distributions) regardless of whether you take cash or metal.

Age Requirements and Early Withdrawal Penalties

The 59½ Threshold

The IRS allows penalty-free withdrawals from Traditional and Roth IRAs beginning at age 59½. If you take a distribution before reaching this age, the taxable portion is generally subject to a 10 percent early withdrawal penalty in addition to regular income tax (for Traditional IRAs).

Exceptions to the Early Withdrawal Penalty

Several exceptions allow penalty-free early withdrawals, including:

Disability (as defined by the IRS).
Substantially equal periodic payments (SEPP/72(t) distributions).
Unreimbursed medical expenses exceeding a certain percentage of adjusted gross income.
First-time home purchase (up to $10,000 lifetime limit).
Qualified higher education expenses.
Health insurance premiums while unemployed.
IRS levy on the account.

These exceptions waive the 10 percent penalty but do not eliminate income tax on Traditional IRA distributions. Consult a tax professional before taking an early distribution to understand your specific situation.

Required Minimum Distributions (RMDs)

Traditional IRA holders must begin taking required minimum distributions once they reach the applicable age, which is currently 73 under the SECURE 2.0 Act. Roth IRAs are not subject to RMDs during the original account holder's lifetime.

How RMDs Are Calculated

Your RMD for a given year is calculated by dividing your IRA account balance as of December 31 of the prior year by a life expectancy factor from IRS Uniform Lifetime Table III. For a precious metals IRA, the account balance is determined by the fair market value of all metals and cash in the account on the valuation date.

RMD Timing and Penalties

Your first RMD must be taken by April 1 of the year following the year you turn 73. All subsequent RMDs must be taken by December 31 of each year. Failing to take a required distribution results in a steep penalty—currently 25 percent of the amount that should have been withdrawn (reduced from the previous 50 percent by SECURE 2.0), and potentially reducible to 10 percent if corrected within two years.

Satisfying RMDs With Precious Metals

You can satisfy your RMD through either a cash distribution or an in-kind distribution of physical metals. If you choose in-kind, the fair market value of the metals distributed must equal or exceed your RMD amount. Many investors prefer the cash option for simplicity, but taking in-kind delivery can be advantageous if you want to continue holding the physical metals outside the IRA structure.

Traditional IRA vs. Roth IRA Distributions

Traditional Precious Metals IRA

Contributions are typically tax-deductible (subject to income limits if you also have an employer plan).
All distributions are taxed as ordinary income in the year received.
Early distributions (before 59½) are subject to a 10 percent penalty in addition to income tax.
RMDs begin at age 73.

Roth Precious Metals IRA

Contributions are made with after-tax dollars—no upfront tax deduction.
Qualified distributions are completely tax-free (account must be open at least five years and you must be 59½ or older).
Roth contributions (not earnings) can be withdrawn at any time without tax or penalty.
No RMDs during the original owner's lifetime.

The Roth advantage is particularly compelling for precious metals. If gold or silver appreciates significantly over decades, all of that growth can be withdrawn tax-free in a Roth IRA. Our IRA tax rules guide explores the full tax implications in detail.

In-Kind Distribution: Taking Physical Delivery

One of the unique benefits of a precious metals IRA is the ability to take physical delivery of your gold and silver through an in-kind distribution. Here is what the process looks like:

You instruct your custodian that you want an in-kind distribution of specific metals in your account.
The custodian calculates the fair market value of the metals on the distribution date.
For Traditional IRAs, the fair market value is reported as taxable income. For qualified Roth distributions, no tax is owed.
The depository packages and ships your metals via insured carrier to your specified address.
You receive and inspect the physical metals, which are now your personal property outside the IRA.

After receiving the metals, you are free to hold them personally, store them at home or in a private vault, sell them on the open market, or gift them. Any future appreciation on metals received in-kind will be subject to capital gains tax when you eventually sell them, with a cost basis equal to the fair market value on the distribution date.

Planning Strategies for Precious Metals IRA Distributions

Tax-bracket management. If you have a Traditional IRA, plan your distributions to stay within a favorable tax bracket. Spreading distributions across multiple years can reduce your overall tax burden.
Roth conversions. Consider converting some Traditional IRA metals to a Roth IRA during low-income years, paying the tax now to enjoy tax-free growth and distributions later.
In-kind for continued holding. If you believe gold or silver will continue to appreciate, taking in-kind delivery lets you maintain your metals position while satisfying RMD or other distribution requirements.
Charitable distributions. If you are 70½ or older, you can direct up to $100,000 per year from a Traditional IRA to a qualified charity as a Qualified Charitable Distribution (QCD), which satisfies your RMD without increasing your taxable income.
Beneficiary planning. Ensure your IRA beneficiary designations are current. Inherited IRA distribution rules have changed significantly under the SECURE Act, affecting how quickly beneficiaries must withdraw inherited metals.

Work with a tax advisor familiar with precious metals IRAs to implement these strategies effectively. Our comprehensive gold IRA guide provides additional context on the full lifecycle of a precious metals retirement account.

Fees Associated With Distributions

Be aware of potential fees when taking distributions:

Liquidation or selling fee – If taking a cash distribution, the custodian or dealer may charge a fee for selling your metals.
Shipping and insurance – In-kind distributions require insured shipping from the depository to your home, which may cost $30 to $100 or more depending on the value and weight.
Wire transfer fee – Cash distributions sent via wire may incur a $25 to $50 fee.

Factor these costs into your distribution planning. Our IRA fees guide provides a complete breakdown of all costs associated with a precious metals IRA.

Frequently Asked Questions

Can I take physical delivery of my IRA gold and silver?: Yes. This is called an in-kind distribution. The fair market value of the metals on the distribution date is reported for tax purposes, and the physical metals are shipped to you via insured carrier. After delivery, the metals are your personal property outside the IRA.
What is the penalty for early withdrawal from a precious metals IRA?: If you are under age 59½ and do not qualify for an exception, the taxable portion of your distribution is subject to a 10 percent early withdrawal penalty in addition to regular income tax (for Traditional IRAs).
When do I have to start taking RMDs from my gold IRA?: For Traditional IRAs, RMDs must begin by April 1 of the year following the year you turn 73. Roth IRAs are not subject to RMDs during the original owner's lifetime.
How are precious metals IRA distributions taxed?: Traditional IRA distributions are taxed as ordinary income. Qualified Roth IRA distributions are tax-free. The tax treatment is the same whether you take cash or physical metals. See our tax rules guide for full details.
Can I satisfy my RMD with a physical gold distribution?: Yes. You can take an in-kind distribution of physical metals to satisfy your RMD. The fair market value of the metals distributed must meet or exceed your RMD amount for the year.
What happens if I miss an RMD?: The penalty for failing to take a required minimum distribution is 25 percent of the amount that should have been withdrawn. This penalty may be reduced to 10 percent if you correct the shortfall within two years.
Do I pay capital gains tax on gold in my IRA?: No. Capital gains are not separately taxed inside an IRA. Traditional IRA distributions are taxed as ordinary income regardless of how much the metals appreciated. Roth IRA qualified distributions are entirely tax-free, including all appreciation. Our IRA-eligible gold guide covers product selection for tax-advantaged accounts.

Plan Your Distributions With Confidence

A well-planned distribution strategy maximizes the benefits of your precious metals IRA and minimizes unnecessary taxes and penalties. Whether you are approaching RMD age, considering early access, or simply planning ahead, understanding your options is the first step. Explore MintBuilder's gold selection and silver selection to build an IRA portfolio designed for long-term success, and consult our custodian selection guide if you are still choosing the right IRA partner.