Gold IRA Withdrawals and Required Minimum Distributions

Two ways to withdraw

Cash

You tell your custodian how much you need. The metal is sold, usually back to the dealer, and the proceeds are paid to you. Ask for the buyback price before approving the sale; it's typically close to spot.

In kind

The coins or bars are shipped to you. From a traditional IRA, their market value on that day counts as taxable income. You'll need cash from elsewhere to pay the tax. See gold IRA taxes.

Withdrawing before 59½

Early withdrawals from a traditional IRA are taxed as income and usually hit with a 10% additional tax. The IRS allows some exceptions, such as certain disability, medical and first-home situations. Check the current list with a tax professional before relying on one.

Required minimum distributions

From age 73, you must take a minimum amount from traditional IRAs each year, calculated from your total balance and an IRS life-expectancy table. Under current law the starting age rises to 75 for people born in 1960 or later. Missing an RMD triggers an additional tax of up to 25% of the shortfall, reduced if you correct it promptly.

Handling RMDs with metal

• Sell some metal each year to cover the amount.
• Take coins in kind worth the RMD amount.
• Take it from another IRA: RMDs from traditional IRAs can be combined, so you can withdraw the full amount from a regular IRA and leave the gold alone.

Plan this before you turn 73. Selling metal in a hurry at a weak price is the main risk.

Roth gold IRAs

A Roth has no RMDs during your lifetime, and qualified withdrawals, cash or metal, are tax-free. That makes it a natural home for metal you may want to hold long term or pass on. See Roth gold IRA.

Practical tips

• Withdrawals take a few days: the custodian authorizes, the depository releases, the dealer pays.
• Expect possible fees for selling, shipping or closing the account.
• Keep a record of in-kind distribution values for future tax returns.