Quick answer: IRA-owned gold and silver must be held by an IRS-approved trustee or custodian at an approved depository – not at home, and not in a personal safe deposit box under the owner’s own control – a rule confirmed in the 2021 McNulty Tax Court case, which treated home-stored IRA gold as a taxable distribution.

The legal rule (IRC 408(m))

Section 408(m) of the Internal Revenue Code requires IRA-held bullion meeting minimum purity standards to be held by a bank, federally insured credit union, or IRS-approved non-bank trustee – the practical effect is that the metal sits in a professional, insured depository, not the account owner’s home.

What the McNulty case actually decided

In McNulty v. Commissioner (2021), the Tax Court ruled that gold coins purchased through a self-directed IRA but stored in the taxpayer’s home safe were not ‘in the physical possession’ of an IRS-approved trustee, making the entire IRA balance a taxable distribution subject to income tax and the 10% early-withdrawal penalty.

Frequently Asked Questions

What about ‘home storage Gold IRA’ companies that claim this is legal?

Any company marketing a fully compliant ‘home storage IRA’ should be treated with real skepticism given the McNulty ruling; ask specifically how they structure storage to satisfy IRC 408(m) before proceeding.

Are approved depositories insured?

Reputable IRA depositories carry commercial insurance on stored bullion – request specific policy and coverage details from your custodian.

Source: IRS Publication 590-B: Distributions from IRAs

Written by Samuel, Certified Public Accountant. Published August 2026. Last updated: August 2026.