Why home storage isn’t allowed
Under IRC §408(m)(3)(B), physical metal held inside an IRA must be in the custody of a bank, an approved nonbank trustee, or another entity that qualifies as a trustee under IRS rules — not the account owner personally. This isn’t a gray area the IRS has left untested: in McNulty v. Commissioner (T.C. Memo. 2021-84), the Tax Court ruled that a taxpayer who took physical possession of IRA-owned American Eagle coins and stored them in a home safe had taken a taxable distribution of the full amount, even though the coins never left an LLC structure she controlled.
That case is also why so-called “checkbook IRA” or home-storage LLC structures marketed by some promoters don’t actually solve the problem — wrapping the metal in an LLC you personally control doesn’t change who has physical custody.
What IRS-approved storage actually looks like
In practice, your custodian arranges storage at a depository like Delaware Depository, Brink’s Global Services, IDS of Texas, or CNT Depository — insured, audited, third-party vaults built for this. You choose between two models:
| Storage type | How it works | Typical cost tendency |
|---|---|---|
| Segregated | Your specific coins/bars are physically separated and identifiable as yours; you get the exact items back | Higher |
| Commingled | Your metal is pooled with other investors’ holdings of the same type; you’re owed an equivalent weight/purity, not specific pieces | Lower |
Fee ranges vary by depository and custodian; confirm the current schedule in writing before funding an account.
What it actually costs
Storage typically runs $150–$300 per year, either flat or scaled to the value stored, and is billed separately from your custodian’s annual administration fee. Segregated storage generally costs more than commingled storage for the same value held.
Frequently Asked Questions
Can I use a “checkbook IRA” LLC to store gold at home?
No. The IRS and the Tax Court in McNulty specifically rejected this structure for IRA-owned precious metals — routing custody through an LLC you control doesn’t satisfy the trustee-custody requirement.
What happens if I get caught storing IRA gold at home?
The IRS can treat the entire account as distributed as of the date you took possession. That means ordinary income tax on the full value in that tax year, plus a 10% early-withdrawal penalty if you’re under 59½.
Can I ever take physical possession of my Gold IRA metal?
Yes — but only as an actual distribution once you’re eligible to take one. At that point the metal is no longer inside the IRA, and its fair market value on the distribution date is taxed as ordinary income, the same as any other IRA withdrawal.
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