Converting a Traditional Gold IRA to a Roth IRA

A Roth conversion moves money from a Traditional IRA to a Roth IRA and pays tax on it now. This page explains how that works when the Traditional IRA holds gold or silver. It covers what gets taxed, the questions that come up when metal is involved, and the tax forms. For the wider picture, see Gold IRA Taxes. This is general information, not tax advice. A conversion can change your tax bill for the year, so a CPA or enrolled agent should look at your numbers first.

Can you convert a Gold IRA to a Roth IRA?

Generally, yes. A "Gold IRA" is not a separate type of IRA. It is a Traditional (or Roth) IRA whose custodian lets it hold IRS-eligible physical metals. Converting means moving the money into a Roth IRA.

The Treasury regulation on conversions describes three ways to do it (26 CFR 1.408A-4):

• A rollover, where an amount distributed from a Traditional IRA is contributed to a Roth IRA.
• A trustee-to-trustee transfer.
• A transfer to a Roth IRA kept by the same trustee.

Which of these your custodian offers, and whether it offers a Roth IRA that can hold metals at all, is something to ask before you start.

What gets taxed in a conversion?

The IRS says: "A conversion to a Roth IRA results in taxation of any untaxed amounts in the traditional IRA" (IRS IRA FAQs). The regulation says any amount converted is "includible in gross income as a distribution" (26 CFR 1.408A-4). The part that is a return of money you already paid tax on (your "basis") is not counted as income from the conversion.

In plain terms:

The same regulation says the taxable conversion amount also counts as income for other purposes, with Social Security taxability given as an example. Ask a tax professional how that could apply to you.

The IRS Form 8606 instructions explain how the taxable part is worked out. Line 6 asks for "the total value of all your traditional IRAs as of December 31, 2025, plus any outstanding rollovers" (2025 form year). So Form 8606 looks at all your Traditional IRAs, not just the Gold IRA. If you also hold a Traditional IRA at a bank or brokerage, it can matter to the calculation.

How do metals change the conversion?

Three questions come up that do not arise with a cash IRA.

Can the coins or bars move in kind?

An "in-kind" move means the metal itself is transferred, not sold first. Whether that is possible depends on the custodian, the depository, and whether the Roth IRA can hold the same products. The regulation's methods (rollover, transfer, same-trustee) say nothing specific about metals, so ask your custodian how it handles a conversion and what paperwork it needs. Selling first and converting cash is another path, but it may involve dealer spreads, fees and a different tax picture for the sale. Costs vary by firm. See Gold IRA fees.

How is the metal valued?

The taxable amount depends on the value of what is converted. For an individual retirement annuity that is converted, the Treasury regulation uses the fair market value of the contract on the conversion date. I did not find an IRS page that sets out a metals-specific valuation method for a Gold IRA conversion. Ask the custodian what value it will report, on what date, and from what source. Keep a copy of that statement.

For reporting, the Form 1099-R instructions include this line: "For a distribution from a traditional IRA of assets that do not have a readily available FMV, enter code K in box 7a." Whether that code applies to a metals IRA is for the custodian to decide. The point is to ask rather than assume.

Does the Roth IRA still follow the metals rules?

The IRS says the collectibles restrictions apply to IRAs, and that an individually directed account's acquisition of a "collectible" is treated as an immediate distribution equal to its cost. It lists exceptions, including gold, silver, platinum or palladium bullion "of a certain fineness" kept by "a bank or approved non-bank trustee," and certain coins (IRS collectibles page). See Gold IRA rules. The IRS page does not discuss Roth IRAs separately, so ask the custodian or a tax professional how it applies.

How is a conversion reported?

Two forms matter. The custodian files one, and you file the other.

For Form 1099-R, the IRS instructions say: "You must report a traditional IRA distribution that you know is converted this year to a Roth IRA in boxes 1 and 2a." The same instructions say this applies even to a trustee-to-trustee transfer or a transfer within the same trustee. Box 7a asks for code 2 or 7 "depending on the participant's age." The taxable amount in box 2b is generally marked "Taxable amount not determined" unless other instructions apply. That is why Form 8606 matters: it is where the taxable amount is worked out (IRS Form 1099-R instructions).

For Form 8606, the instructions list "You converted an amount from a traditional IRA to a Roth IRA in 2025" under who must file (2025 form year). The form's Part II covers conversions, and line 18 gives the taxable amount to carry to Form 1040 (Form 8606 instructions). See Gold IRA Tax Forms for the full set of forms.

Can you undo a conversion?

No, not for conversions made in 2018 or later. The IRS FAQs say that "a conversion from a traditional IRA, SEP or SIMPLE to a Roth IRA cannot be recharacterized." The Form 8606 instructions say the same under "No recharacterizations of conversions made in 2018 or later." It is worth understanding the value and the tax effect before converting, since a conversion cannot be recharacterized.

What else should you consider?

• Cash for the tax. The conversion creates a tax bill in the year it happens. Think about where the money for it would come from. A tax professional can model this.
• Withholding. The regulations treat a conversion as a distribution for withholding purposes (26 CFR 1.408A-6). Ask the custodian how it handles withholding on a conversion.
• Price risk. Gold and silver prices can fall as well as rise. If metal is converted at one value and its price later drops, the conversion cannot be undone. No one can promise how prices will move.
• Required withdrawals. Traditional IRAs have required minimum distributions (RMDs). See Gold IRA RMDs for how those work with metal. Ask a tax professional how a conversion affects your RMD plan.
• Holding gold outside an IRA. Metal held in your own name is taxed differently. See Gold IRA vs Owning Gold Outside an IRA.

Related questions

Is a Roth conversion the same as a rollover?

Not exactly. A conversion is moving a Traditional IRA amount to a Roth IRA, and the IRS says untaxed amounts are taxed. The regulation lists a rollover as one of the ways a conversion can be done, so the two terms overlap. See the 60-day rule for how rollover deadlines work.

Do I need to report a conversion if the custodian files Form 1099-R?

The Form 8606 instructions say you must file the form if you converted an amount in the year. The custodian's Form 1099-R does not replace it.

Who can help me decide?

A CPA or enrolled agent can compare your options using your actual income and accounts. This page cannot say whether a conversion makes sense for you.