In any IRA, including a self-directed one, a bank or IRS-approved non-bank trustee holds legal title to the account’s assets under IRC Section 408(a) — you direct how the money is invested, but you don’t personally hold the assets. This is precisely why self-directed IRAs use custodians and, for physical metals, IRS-approved depositories rather than a personal safe or account.

Within a self-directed IRA, IRC Section 4975 lists prohibited transactions — including using IRA assets for your own personal benefit, borrowing from your IRA, or having certain disqualified persons (yourself, your spouse, direct family) transact with it. Violating these rules can disqualify the entire IRA, triggering immediate taxation. The custodian structure exists specifically to keep the account’s tax-advantaged status intact — it’s a legal requirement, not a marketing inconvenience.