Gold has really stepped into the spotlight, proving itself as a top performer in investment portfolios, significantly outpacing its peers and transforming safety into substantial earnings.
Since January 2024, the returns on gold have tripled compared to the S&P 500, which is not doing too shabby itself.
Given the impressive gains, many folks are opening gold IRA accounts, allowing them to transition their retirement savings into tangible assets like gold. The demand has surged, reaching unprecedented levels in 2025, according to the World Gold Council.
Analysts from So Metals Group note that this uptick is primarily fueled by a movement towards “hard assets” amid ongoing currency vulnerabilities.
For many, channeling their tax-deferred income into commodities such as gold seems like a smart move.
Investing in gold and other precious metals diversifies your portfolio, especially beneficial since paper assets have seen considerable volatility in recent years. Once you grasp the basics, navigating the process with a trustworthy custodian can be quite straightforward.
You can let your assets grow without taxes until you’re ready to access them or even pass them on to your heirs. But it’s important to know that if you need to liquidate your gold or other metals held in your IRA, certain complications can arise that you might not expect.
Does an RMD mean I have to sell the gold in my IRA?
In short, yes.
Gold IRAs, or self-directed IRAs, must adhere to the same regulations as standard IRAs. If you have this type of account, you’re likely aware of the annual contribution limits based on your income.
Depending on the IRA type, you might be obligated to withdraw funds each year, referred to as a required minimum distribution (RMD). The IRS specifies that if you were born before 1959, your first RMD is due by April 1 following your 73rd birthday, continuing each year thereafter. For those born after 1960, the RMD age will bump up to 75 by 2033.
With traditional IRAs, these RMDs are considered taxable income. This means that any funds withdrawn will be taxed at your current rate, excluding your initial investment. But with a Roth IRA, you won’t have to take distributions or pay taxes, since you used after-tax dollars to buy the gold.
Taking gold out of an IRA is a process
According to IRS rules, the gold must be held by a custodian and retrieved, which can be the tricky part. Depending on your situation, expenses could add up quickly, and you might not receive as much as you anticipated. Here are a few things to keep in mind when selling gold in your IRA.
The first issue crops up if you want to withdraw before turning 59 and a half—there’s a 10% federal penalty on early withdrawals, on top of regular income taxes.
It’s easy enough to sidestep this fee by waiting until you’re older, but, you know, life can be unpredictable.
If you’re liquidating gold assets from your IRA, you’ll generally work with at least three entities: a custodian, a dealer, and a metals trader. Some full-service firms, like Thor Metals Group, can help streamline communication between them, but this can still drive up transaction costs.
Setting up a Gold IRA with a different company than your custodian adds more complexity, leading to even higher costs.
Your custodian might have better relationships with metal dealers, potentially securing a better price for your gold. However, you might not snag the spot price for the moment you issue your sell request.
In fluctuating markets like those we’ve recently experienced, that can be a costly situation. If you’re anxious about needing to sell your gold in a downturn, it might be tough to act quickly enough to get a fair price.
Gold IRA companies and custodians may provide varying rates for buying and selling gold. You might find yourself paying a retail markup on gold purchases, but when you go to sell, you only receive the wholesale rate. Reliable dealers, such as Thor, often have clear buyback policies to address this gap, but if your IRA isn’t managed by a top-tier company, you could end up forfeiting profits.
Additionally, you may encounter losses from clearing fees charged by the custodian. If you haven’t reviewed their fee schedule yet, it’s wise to do so. If their fees are based on a percentage of assets managed, consider moving your gold to a lower-cost custodian.
What you need to know if you want to get gold
Once you’ve splurged on a safe for your gold, paying a vault fee might feel wasteful. Here’s what to keep in mind before liquidating your account.
If you have a traditional IRA, the government has given you a tax advantage on your gold purchases. Upon selling, they expect to collect their deferred taxes.
With a traditional IRA containing stocks or bonds, you liquidate those holdings into cash and receive a check. In turn, you’ll need to pay income tax on your expenses at the end of the tax year.
When dealing with gold, you’ll face valuation taxes based on the gold’s worth, even if it’s sitting in your basement. Ensure you have cash available to cover your tax obligations.
A couple from Rhode Island faced a $300,000 tax bill because they mistakenly thought their LLC could hold their gold coins. They had used IRA funds to buy the coins, which was considered a distribution.
Unless you plan to pass on your gold IRA posthumously, selling is a matter of necessity. Stay vigilant against scams and pitfalls to safeguard your hard-earned wealth.
FAQ: How to sell gold in an IRA
How much is one gold bar worth today?
As of late April 2026, a standard 1-ounce gold bar values between $4,700 and $4,900. But if you bring it to a dealer, expect a lower offer because they buy at wholesale and sell at retail.
Does the IRS know if I sold the gold?
The IRS monitors gold sales through required dealer filings for significant amounts of bullion or coins (usually 25 ounces or more), along with Form 8300 for cash transactions exceeding $10,000. While off-the-books dealings might elude scrutiny, they’re illegal.
How can I avoid capital gains tax when selling gold?
The most effective way to avoid capital gains tax on gold is by holding it in a Roth IRA. Unlike traditional IRAs, Roth IRAs don’t mandate minimum distributions and distributed funds aren’t taxed. However, they do have income limits. For 2026, you must have an adjusted gross income (MAGI) under $168,000 for single filers and under $252,000 for married couples filing together.
