Can I legally store my IRA gold at home?

No. The IRS requires that IRA precious metals be stored at a qualifying bank or depository. Home storage arrangements—including those using LLC structures—have been challenged and defeated in Tax Court. The risk of a deemed distribution with full taxes and penalties makes home storage a prohibitively expensive gamble.

What is the difference between a bank safe deposit box and an IRS-approved depository?

A personal bank safe deposit box is rented in your name and is under your direct access and control, which does not satisfy IRA custodial requirements. An IRS-approved depository is a qualifying institution that holds the metals on behalf of your IRA custodian, maintaining proper chain-of-custody and reporting. For non-IRA metals, a bank safe deposit box is a viable personal storage option.

How do I know if a depository is IRS-approved?

The IRS does not publish a depository approval list. In practice, the depository must meet the requirements of IRC Section 408 as a qualifying bank or non-bank trustee. Working with an established IRA custodian ensures they partner only with qualifying depositories. Ask your custodian to confirm the depository's regulatory standing.

Is commingled storage safe for my IRA metals?

Yes. Commingled storage at a reputable, insured depository is fully IRS-compliant and safe. Your ownership interest is recorded by both the custodian and the depository. The metals are insured and audited. The only difference from segregated storage is that you receive equivalent (not identical) items upon withdrawal.

What insurance covers my IRA metals at the depository?

Reputable depositories carry all-risk insurance policies—typically through Lloyd's of London—covering the full declared value of stored metals against theft, fire, natural disaster and other perils. You do not need a separate personal insurance policy for IRA-stored metals.

Can I visit the depository to see my metals?

Policies vary by depository. Some allow scheduled visits for clients with segregated storage; others do not permit individual visits. In all cases, your custodian provides periodic account statements and the depository undergoes independent audits to verify inventory. Contact your custodian to ask about visitation policies for your specific depository.

What happens to my IRA metals if the depository goes bankrupt?

Your metals are your property, held in custody, and are not assets of the depository company. In a bankruptcy proceeding, client metals are separated from the depository's business assets. Additionally, the depository's insurance provides a further layer of protection. Choosing well-established, well-insured depositories minimizes this already remote risk.

Can I store IRA gold and personal gold at the same depository?

Some depositories offer both IRA and non-IRA storage accounts. The metals must be kept in separate accounts with clear segregation between IRA assets (held by the custodian) and personal assets (held in your own name). Mixing the two could create serious compliance issues.

IRA Storage Rules for Gold and Silver: What the IRS Requires

The IRS imposes strict storage rules for gold and silver held in a self-directed IRA, and violating them can result in severe tax consequences and penalties. If you are considering adding physical gold or silver to your retirement account—or you already hold metals in an IRA—understanding these storage requirements is not optional. This guide covers the IRS depository requirement, the home storage prohibition, approved depositories, segregated vs. commingled storage, insurance standards, audit procedures and the penalties for non-compliance.

The IRS Depository Requirement

Internal Revenue Code Section 408(m)(3)(B) states that precious metals held in an IRA must be in the physical possession of a bank, an approved non-bank trustee, or an IRS-approved depository. This means your gold and silver IRA assets must be stored at a qualifying third-party facility—not in your home, not in a personal bank safe deposit box, and not in any location under your direct control.

The rationale is straightforward: IRA assets receive significant tax advantages, and the IRS requires that those assets be held by an independent custodian to ensure proper reporting, prevent premature access and maintain the integrity of the tax-advantaged structure. The requirement applies to all types of self-directed IRAs that hold physical precious metals, including Traditional, Roth, SEP and SIMPLE IRAs.

The Home Storage Prohibition

Despite aggressive marketing by some companies promoting 'home storage' gold IRAs, storing IRA metals at home is effectively prohibited for the vast majority of investors. The typical scheme involves creating a limited liability company (LLC), naming it as the IRA's investment vehicle, and then having the LLC take possession of the metals at the account holder's home.

Why Home Storage Does Not Work

The IRS and the Tax Court have consistently ruled against home storage arrangements. In the landmark McNulty v. Commissioner case, the Tax Court held that an IRA holder who used an LLC structure to store metals at home had effectively taken a taxable distribution. The taxpayers owed income taxes on the full value of the metals plus a 10 percent early withdrawal penalty.

The legal issue is that the IRA holder has constructive possession of the metals when they are stored at their home, which violates the custodial requirements of Section 408(m). While some promoters argue that the LLC creates a legal separation, the Tax Court has not accepted this argument.

The bottom line: Do not store IRA metals at home. The risk of a full taxable distribution plus penalties far outweighs any savings on storage fees. For non-IRA metals that you own personally, home storage is perfectly fine—see our storage options comparison for guidance on home safes, bank boxes and private vaults for personal holdings.

What Qualifies as an Approved Depository?

The IRS does not maintain a public list of 'approved depositories,' but the requirement is that metals be held by a bank (as defined under federal or state banking law) or by a non-bank trustee approved by the IRS under Section 408. In practice, this means working with well-established, insured depositories that partner with qualified IRA custodians. The most widely used depositories for precious metals IRAs include:

Delaware Depository – One of the largest and most established precious metals depositories in the US, located in Wilmington, Delaware.
Brink's Global Services – A global security and logistics company with precious metals vault facilities in multiple US locations.
International Depository Services (IDS) – Operates vaulting facilities in Delaware and Texas.
HSBC, JPMorgan Chase and other major banks with vault services also qualify, though they are less commonly used for individual IRA accounts.

Your IRA custodian typically has established relationships with one or more depositories and will coordinate the storage on your behalf. Some custodians offer a choice of depositories, while others use a single preferred facility. Our custodian selection guide helps you evaluate depository options as part of the custodian comparison process.

Segregated vs. Commingled Storage

When your metals arrive at the depository, they will be stored in one of two ways:

Segregated Storage

Your specific bars and coins are stored separately from all other clients' holdings, typically in individually labeled bags, boxes or compartments. When you take a distribution or close your account, you receive the exact items you deposited. Segregated storage provides the highest level of ownership clarity and is preferred by investors who value knowing their specific metals are identifiable and untouched.

Commingled (Allocated) Storage

Your metals are stored alongside other clients' metals of the same type, weight and purity. The depository records show that you own a specific quantity—for example, ten 1 oz American Gold Eagles—but the particular coins are not individually tracked to your account. When you withdraw, you receive the same type and quantity of product, but not necessarily the same specific coins you deposited.

Which Should You Choose?

Both options are IRS-compliant. Segregated storage costs more (typically an additional $50 to $150 per year) but provides peace of mind that your exact items are identifiable. Commingled storage is less expensive and perfectly adequate for fungible bullion products where one American Gold Eagle is identical to another. Our IRA fees guide breaks down the cost difference between storage types.

Insurance Requirements

Reputable depositories carry comprehensive all-risk insurance policies that cover the full declared value of metals stored in their vaults. These policies typically protect against theft, fire, natural disaster, employee dishonesty and other covered perils. Key insurance considerations include:

Coverage limits – Verify that the depository's total insurance coverage exceeds its total stored value. Request a copy of the insurance certificate.
Insurer quality – Lloyd's of London syndicates are the most common underwriters for precious metals vault insurance, known for their financial strength and claims-paying history.
Your liability – Under normal circumstances, the depository's insurance covers your metals. You do not need to purchase a separate personal policy for IRA-stored metals.

Audit and Verification Procedures

Reputable depositories undergo regular third-party audits to verify that physical inventory matches client records. Key audit elements include:

Audit frequency – Major depositories are audited at least annually, with some conducting quarterly or even monthly inventory verifications.
Auditing firms – Independent accounting firms certified in precious metals auditing perform the inspections.
Client access to audit results – Some depositories publish summary audit results; others make them available upon request.
Account statements – You should receive periodic statements from your custodian reflecting your holdings at the depository, which you can verify against your purchase records.

Penalties for Violating IRA Storage Rules

The consequences of improper storage—particularly home storage—can be severe:

Deemed distribution – The IRS may treat the metals as having been distributed to you on the date they were improperly stored, triggering full income tax on the fair market value (for Traditional IRAs).
10 percent early withdrawal penalty – If you are under age 59½ at the time of the deemed distribution, an additional 10 percent penalty applies.
Loss of tax-advantaged status – Once treated as a distribution, the metals are no longer in your IRA. You cannot 'put them back' without counting it as a new contribution subject to annual limits.
Potential accuracy-related penalties – If the IRS determines you underreported income by failing to report the deemed distribution, additional accuracy penalties of 20 percent may apply.

For a $100,000 gold IRA improperly stored at home by someone under 59½ in a 22 percent tax bracket, the potential cost could be approximately $22,000 in income tax plus $10,000 in early withdrawal penalties—$32,000 or more. This dwarfs decades of legitimate storage fees. Our IRA mistakes guide covers this and other costly errors in detail.

State-Specific Considerations

While IRA storage rules are governed by federal tax law, some state-level factors may be relevant:

State income tax – A deemed distribution from an improperly stored IRA is subject to state income tax in addition to federal tax in states that tax retirement income.
Depository location and state law – Some states, such as Delaware and Texas, have favorable legal frameworks for precious metals storage, including strong UCC provisions that clearly define client ownership rights separate from depository creditors.
State sales tax – Metals purchased for IRA storage are typically exempt from state sales tax since they are not delivered to the account holder. Verify with your custodian.

Frequently Asked Questions

Can I legally store my IRA gold at home?: No. The IRS requires that IRA precious metals be stored at a qualifying bank or depository. Home storage arrangements—including those using LLC structures—have been challenged and defeated in Tax Court. The risk of a deemed distribution with full taxes and penalties makes home storage a prohibitively expensive gamble.
What is the difference between a bank safe deposit box and an IRS-approved depository?: A personal bank safe deposit box is rented in your name and is under your direct access and control, which does not satisfy IRA custodial requirements. An IRS-approved depository is a qualifying institution that holds the metals on behalf of your IRA custodian, maintaining proper chain-of-custody and reporting. For non-IRA metals, a bank safe deposit box is a viable personal storage option.
How do I know if a depository is IRS-approved?: The IRS does not publish a depository approval list. In practice, the depository must meet the requirements of IRC Section 408 as a qualifying bank or non-bank trustee. Working with an established IRA custodian ensures they partner only with qualifying depositories. Ask your custodian to confirm the depository's regulatory standing.
Is commingled storage safe for my IRA metals?: Yes. Commingled storage at a reputable, insured depository is fully IRS-compliant and safe. Your ownership interest is recorded by both the custodian and the depository. The metals are insured and audited. The only difference from segregated storage is that you receive equivalent (not identical) items upon withdrawal.
What insurance covers my IRA metals at the depository?: Reputable depositories carry all-risk insurance policies—typically through Lloyd's of London—covering the full declared value of stored metals against theft, fire, natural disaster and other perils. You do not need a separate personal insurance policy for IRA-stored metals.
Can I visit the depository to see my metals?: Policies vary by depository. Some allow scheduled visits for clients with segregated storage; others do not permit individual visits. In all cases, your custodian provides periodic account statements and the depository undergoes independent audits to verify inventory. Contact your custodian to ask about visitation policies for your specific depository.
What happens to my IRA metals if the depository goes bankrupt?: Your metals are your property, held in custody, and are not assets of the depository company. In a bankruptcy proceeding, client metals are separated from the depository's business assets. Additionally, the depository's insurance provides a further layer of protection. Choosing well-established, well-insured depositories minimizes this already remote risk.
Can I store IRA gold and personal gold at the same depository?: Some depositories offer both IRA and non-IRA storage accounts. The metals must be kept in separate accounts with clear segregation between IRA assets (held by the custodian) and personal assets (held in your own name). Mixing the two could create serious compliance issues.

Store Your Retirement Metals the Right Way

Compliant storage is the foundation of a successful precious metals IRA. By using an IRS-approved depository through a qualified custodian, you protect your tax-advantaged status, ensure your metals are insured and audited, and avoid the severe penalties associated with improper storage. Explore MintBuilder's IRA-eligible gold and silver products, then pair your metals with a custodian and depository that meet every IRS requirement. For step-by-step guidance on the full setup process, start with our comprehensive gold IRA guide, and review our custodian comparison to find the right partner for your retirement goals.