Self directed IRA rules

Check the asset, possession and transaction separately, in that order.

R1 concerns what you buy. R2 concerns how it is held. R3 and R5 concern the parties and purpose. Passing one test does not settle the others. The personal-benefit scenarios apply even to otherwise eligible gold.

Section 408 prohibits life insurance and treats an IRA’s acquisition of a collectible as a distribution, subject to specified exceptions.^[4]

Section 408(m)(3) identifies specific coin exceptions and a separate exception for qualifying bullion.

Fineness is not the only issue. A sales label does not replace the exact product specification and written acceptance by the custodian. This guide does not certify any individual coin or bar.

The bullion exception covers gold, silver, platinum and palladium meeting the relevant contract-market fineness standard, with physical possession by a qualifying trustee. The statute also lists specific coin exceptions.^[2]

The arrangement must preserve the required trustee or custodian possession; keeping IRA coins in your personal safe is not an acceptable assumption.

Ask the institution administering the account how its storage contract satisfies possession and recordkeeping. “IRS-approved depository” in a pitch is not a substitute for those terms. The IRS list this guide links is a nonbank trustee/custodian list, not a list endorsing storage buildings.

An LLC controlled by the IRA owner does not itself answer who has possession. If you cannot get a clear written explanation, leave the proposed purchase unapproved.

• IRS Publication 590-B describes the eligible-coin exception and cautions that the coins must remain with the IRA custodian or trustee. A home safe does not satisfy that instruction.^[5]

The 2026 IRA limit is shared across traditional and Roth IRAs; self-direction creates no additional annual allowance.

A contribution is not the same as moving existing IRA money between trustees. Keep the funding-route instructions separate from the dealer’s opening threshold. Roth contribution eligibility also has income-based restrictions.

• For 2026, the combined traditional and Roth IRA contribution limit is $7,500, subject to compensation and eligibility rules. Transfers and rollovers follow separate rules.^[6]
• For 2026, the additional IRA catch-up amount for people age 50 and over is $1,100. Added to the regular limit, that is $8,600, subject to eligibility.^[7]

Yes. An unusual asset does not switch off the account’s distribution rules or potential tax obligations.

Ask how cash would be raised for required payments and what an in-kind distribution would involve. Holding metal should not leave you learning the sale process at a deadline. The liquidity and administration comparison helps assess that burden.

A one-participant 401(k) has its own plan requirements. Do not apply every IRA statement to a business plan without checking its documents.

• Publication 590-B (2025 edition) states age 73 for the required beginning date rules applicable to current cohorts. Traditional IRA owners must plan distributions even if their assets are physical metal; confirm the rule for your birth year.^[8]
• An IRA can owe tax on unrelated business income. Self-directed ownership does not make operating-business or debt-related tax questions disappear; obtain advice before adding such investments.^[9]

The consequence can affect the entire participating IRA, not just the amount of one trade.

If an owner or beneficiary engages in a prohibited transaction, the affected account generally loses IRA status from the first day of that year and is treated as distributing its assets at their fair market values then.^[10]