A self-directed IRA is the vehicle that makes gold IRA investing possible. Standard brokerage IRAs at firms like Fidelity, Schwab, or Vanguard do not allow you to hold physical precious metals. To own actual gold, silver, platinum, or palladium in a retirement account, you need a self-directed IRA with a custodian authorized to hold alternative assets.
This guide explains how self-directed IRAs work, what makes them different from conventional retirement accounts, which custodians are approved, what you can (and cannot) invest in, and the specific rules that govern these specialized accounts.
What Is a Self-Directed IRA?
A self-directed IRA is an Individual Retirement Account that grants the account holder broader investment discretion than a standard IRA. The “self-directed” designation does not refer to a special IRS account type — from a tax code perspective, it is simply a traditional IRA or Roth IRA. The difference lies in the custodian: self-directed IRA custodians allow (and facilitate) investments in alternative assets that mainstream brokerages do not support.
With a self-directed IRA, you can invest in:
For the purposes of this guide, we focus on self-directed IRAs used for physical precious metals investment — the most common use case among retirement investors looking for tangible asset exposure.
How It Differs from Traditional Brokerage IRAs
| Feature | Standard Brokerage IRA | Self-Directed Gold IRA |
|---|---|---|
| Available investments | Stocks, bonds, mutual funds, ETFs, CDs | Physical metals + standard investments |
| Custodian | Fidelity, Schwab, Vanguard, etc. | Specialized SDIRA custodian (Equity Trust, GoldStar, etc.) |
| Annual fees | $0 at most brokerages | $180-$225/year + $150/year storage |
| Setup fees | $0 | $0-$80 |
| Investment process | Online, instant execution | Phone or online, multi-step (custodian + dealer + depository) |
| Contribution limits | $7,000 / $8,000 (2026) | Same — $7,000 / $8,000 (2026) |
| Tax treatment | Deferred (traditional) or tax-free (Roth) | Identical |
| RMD rules | Standard RMD requirements | Same — but RMDs from physical metals add complexity |
| Rollover from 401(k) | Yes | Yes |
Approved Custodians for Self-Directed Gold IRAs
Self-directed IRA custodians must be approved by the IRS and are regulated by federal or state banking authorities. These custodians provide the administrative framework, maintain compliance with IRS regulations, and handle tax reporting. They do not provide investment advice or manage your portfolio — that responsibility rests with you.
Equity Trust Company
One of the largest self-directed IRA custodians in the United States with over $39 billion in assets under custody. Supports precious metals, real estate, and other alternative investments.
GoldStar Trust Company
A Texas-based trust company specializing in self-directed IRAs for precious metals. Known for competitive fee structures and efficient processing.
The Entrust Group
A California-based self-directed IRA administrator with over 40 years of experience. Supports a wide range of alternative investments including precious metals.
Kingdom Trust
A qualified custodian regulated by the South Dakota Division of Banking. Offers self-directed IRAs for precious metals, real estate, and cryptocurrency.
Strata Trust Company
A Texas-based custodian specializing in self-directed retirement accounts. Supports precious metals, real estate, notes, and other alternatives.
How most investors choose a custodian: Rather than selecting a custodian directly, most investors choose a gold IRA company (like Augusta Precious Metals, Goldco, or Birch Gold Group) that has pre-established relationships with qualified custodians. The gold IRA company handles the custodian setup, account opening, and ongoing coordination — simplifying the process considerably.
View our recommended Gold IRA companies →Investment Options: Beyond Gold
While gold is the most popular precious metal for IRA investment, self-directed IRAs can hold all four IRS-approved precious metals. Each offers different characteristics and serves different roles in a diversified metals portfolio.
Gold
Min. purity: 99.5% (.995)
The primary safe-haven metal. Valued for its role as a store of value, inflation hedge, and portfolio diversifier. Gold has the deepest and most liquid market of all precious metals. Most gold IRA investors make gold their core holding.
Available at: All 8 companies
Silver
Min. purity: 99.9% (.999)
A dual-purpose metal with both monetary and industrial demand. Silver is more volatile than gold and has a historically higher upside potential during bull markets. The gold-to-silver ratio (typically 60-80:1) is used by investors to determine relative value between the two metals.
Available at: All 8 companies
Platinum
Min. purity: 99.95% (.9995)
Rarer than gold with significant industrial applications (automotive catalysts, electronics, jewelry). Platinum prices have historically tracked close to or above gold, though they currently trade at a substantial discount. Limited supply from just a few countries (South Africa, Russia, Zimbabwe) adds geopolitical sensitivity.
Available at: Birch Gold, Noble Gold, Advantage Gold, Rosland Capital
Palladium
Min. purity: 99.95% (.9995)
The rarest of the four IRA-approved metals. Palladium demand is driven primarily by the automotive industry (catalytic converters) and electronics. Supply is highly concentrated in Russia and South Africa, creating significant price volatility. Best suited for investors who understand the industrial metals market.
Available at: Birch Gold, Noble Gold, Advantage Gold, Rosland Capital
For a deeper look at silver as an IRA investment, see our Silver IRA Guide.
Rules and Restrictions: Prohibited Transactions
Self-directed IRAs offer greater investment flexibility, but they also come with strict rules designed to prevent self-dealing. Violating these rules can result in severe tax consequences, including the disqualification of your entire IRA.
Disqualified Persons
Under IRC Section 4975, certain people are “disqualified persons” with respect to your IRA. Your IRA cannot engage in any transaction with these individuals or entities:
Examples of Prohibited Transactions
Selling gold you already own to your IRA
Buying gold from your IRA for personal use or possession
Using IRA-owned metals as collateral for a personal loan
Storing IRA metals at home (personal benefit from IRA assets)
Paying yourself or a disqualified person fees from the IRA
Lending IRA funds to yourself or a disqualified person
Consequence of a prohibited transaction: If you engage in a prohibited transaction, the IRS can treat your entire IRA as distributed as of the first day of the year in which the transaction occurred. This means the full account balance becomes taxable income, and if you are under 59 and a half, a 10% early withdrawal penalty applies on top of that.
Checkbook IRA vs. Custodian-Held: Understanding the Risks
A checkbook IRA (also known as a checkbook control IRA or LLC IRA) is a self-directed IRA structure where the IRA's sole investment is an LLC. The account holder serves as the LLC manager and controls a bank account linked to the LLC. This gives the account holder direct control over investment transactions without waiting for custodian approval.
While checkbook IRAs have legitimate uses in real estate and other alternative investments, they are highly problematic for precious metals. The core issue is storage: IRA metals must be held at an approved depository. A checkbook IRA structure can tempt investors (or be marketed to investors) as a way to hold metals at home through the LLC. As established in court cases and IRS guidance, this violates the custodial requirements and results in a taxable distribution.
| Factor | Custodian-Held Gold IRA | Checkbook IRA (LLC) |
|---|---|---|
| IRS compliance | Well-established and accepted | Gray area for precious metals |
| Storage | Approved depository (required) | Risk of home storage violations |
| Custodian oversight | Custodian ensures compliance | You are responsible for compliance |
| Transaction speed | May take days for custodian processing | Immediate (checkbook control) |
| Setup cost | $0-$80 | $500-$2,000+ (LLC formation, legal) |
| Risk level | Low | High (audit risk, legal challenges) |
Our recommendation: For precious metals IRAs, use a standard custodian-held self-directed IRA with an established gold IRA company. The checkbook IRA structure adds cost, complexity, and legal risk without meaningful benefit for metals investors.
Costs and Fees
Self-directed gold IRA costs include fees from three separate entities: the gold IRA company, the custodian, and the depository. In practice, these are often bundled and presented as a single fee schedule by the gold IRA company.
Account Setup Fee
One-time fee to open the self-directed IRA and establish the custodial relationship.
Annual Custodian Fee
Covers account administration, compliance, statements, and tax reporting.
Storage Fee
Paid to the depository for secure, insured storage. Higher for segregated accounts.
Wire Transfer Fee
Charged for incoming or outgoing wire transfers.
Dealer Markup
Premium over spot price on metals purchases. Varies by product.
For a complete side-by-side comparison of costs across all major gold IRA companies, see our Gold IRA Fees Comparison.