How to Close a Gold IRA

People close a Gold IRA for many reasons. Some want to move to a different custodian. Some need the money. Some want the coins in their own hands. The right route depends on the goal, and each route has a different tax result. This page explains the main ways out and what the IRS says about each. It is part of our guide to Gold IRA Withdrawal Rules.

This is general education, not tax advice. We describe Traditional IRAs unless we say otherwise. Roth IRAs follow different rules, which we only touch on. A CPA or enrolled agent can check your own numbers before you act.

How do I close or exit a Gold IRA?

There are four common exits. In the first two, the money stays in a retirement account. In the last two, it leaves the IRA.

Closing steps differ by custodian, and we did not review any company's process. Ask your custodian for its closing steps in writing.

Option 1: Transfer to another IRA (trustee-to-trustee)

In a trustee-to-trustee transfer, the money or assets go straight from one IRA custodian to another. You never receive them. The IRS rollovers page says: "You can avoid withholding taxes if you choose to do a trustee-to-trustee transfer to another IRA" (IRS).

On reporting, the instructions for Form 1099-R say not to report a transfer between trustees that involves no payment or distribution to the participant. They include a trustee-to-trustee transfer from one IRA to another IRA as an example (IRS instructions).

The IRS also says the one-rollover-per-year rule "applies only to rollovers" (IRS). In our reading, that means direct transfers between IRA custodians do not use up your one rollover for the year.

Two practical questions the IRS pages we opened do not answer:

• Will the new custodian accept your metal as it is? Some transfers move the metal itself, and some require a sale first. That is each custodian's policy, so ask both companies.
• Is the metal still eligible for an IRA? The new custodian will have its own rules about what it holds. See selling metals inside a Gold IRA if a sale is needed first.

For a longer look at moving accounts, see the Gold IRA rollover guide.

Option 2: Rollover with a 60-day deadline

In a rollover, the IRA pays the money to you, and you put it into another IRA yourself. The IRS says: "You have 60 days from the date you receive an IRA or retirement plan distribution to roll it over to another plan or IRA" (IRS).

If you do it on time, the IRS says "you don't have to include in your gross income any amount distributed to you from an IRA" when you deposit it in another eligible plan within the time limit. If you don't roll over your payment, the IRS says "it will be taxable" (exceptions exist for qualified Roth distributions and amounts already taxed).

Points to know:

• Withholding. The IRS says "An IRA distribution paid to you is subject to 10% withholding unless you elect out of withholding or choose to have a different amount withheld." If tax is withheld and you want to roll over the full amount, you would need to make up the difference from other money. Ask a tax professional how that works.
• One rollover per year. The IRS says "You generally cannot make more than one rollover from the same IRA within a 1-year period." The IRS rollover chart shows the same limit for Traditional IRA to Traditional IRA rollovers: "Only one rollover in any 12-month period."
• Late rollovers. The IRS says it "may waive the 60-day rollover requirement in certain situations." Do not plan around that. Ask a tax professional.
• Metal in a rollover. We did not find an IRS statement on rolling over metal itself. A rollover of cash is the clearer path. A direct transfer between custodians is a different route; the IRS says the one-rollover-per-year rule applies only to rollovers.

Option 3: Sell the metal and take the cash

If you want cash, the metal is usually sold first. Selling inside the IRA is a separate step from withdrawing. See selling metals inside a Gold IRA for how sales work, bid prices and timing.

Once cash is paid out to you, it is a distribution. Publication 590-B says: "Distributions from a traditional IRA are taxed as ordinary income" (Publication 590-B). The publication adds that part may be tax-free if you made nondeductible contributions. Taking a large amount in one year may add it all to that year's taxable income. How that affects your tax bracket is a question for a CPA.

Publication 590-B also says: "However, a 10% additional tax generally applies if you withdraw or use IRA assets before you reach age 59½." Exceptions exist and are covered on our early withdrawal page.

The custodian reports the distribution to you and the IRS on Form 1099-R. We did not open the table of distribution codes, so we do not describe the codes here. Check your form with your tax preparer.

Option 4: Take the metal itself (in-kind distribution)

An in-kind distribution means the IRA pays you in property, here the coins or bars, instead of cash. For Form 1099-R, the instructions' box 1 rule for distributed "securities or other property" is: "include in box 1 the FMV of the securities or other property on the date of distribution." FMV means fair market value. That is a reporting rule in the form instructions.

So the amount reported for a distribution of metal is based on its value on the distribution date. How that becomes your taxable amount is a question for a tax professional. The same early-withdrawal tax may apply if you are under 59 and a half. You may owe tax even though you received metal and not cash, so a tax professional can help you plan for it. Our page on in-kind distributions covers shipping, valuation and what happens afterward.

What about a Roth Gold IRA?

We did not open a source that covers every Roth detail here. The IRS rollover chart says moving a Traditional IRA to a Roth IRA is allowed but the amount "Must include in income." For withdrawals from a Roth IRA, check Publication 590-B and ask a tax professional. Do not assume a Roth exit is tax-free.

What fees should I check before closing?

Fees are the part of this process we cannot state in general. Each custodian publishes its own fee schedule and account agreement, and they differ. We have not listed any company's fees here. Before you start, get the current fee schedule and the account agreement from the custodian that holds the account, and look for items such as:

• A closing, termination or account-transfer-out fee.
• Fees for sending the metal out, such as shipping, insurance or handling.
• Fees for the sale itself, including any dealer commission, and the gap between the dealer's buy and sell prices (the spread).
• Annual or storage fees that may be due in full before closing, or billed for a partial year.
• Wire, check or processing charges on the payout.
• Whether fees are taken from the cash in the account, and what happens if the cash is not enough.

Ask for the total cost of your chosen route in writing before you sign anything. Also ask how long it takes. We did not verify timing for any company.

Common mistakes

• Cashing out when a transfer would do. If you only want to change custodians, a direct transfer avoids a distribution. Whether it is right for you is a question for a professional.
• Missing the 60-day deadline on a rollover.
• Forgetting the one-rollover-per-year limit.
• Ignoring tax on an in-kind distribution. Tax may be due even though you received metal and not cash.
• Closing in a high-income year without checking with a tax professional.
• Not asking for the fee schedule first.
• Forgetting the beneficiaries. If you move the account to a new custodian, you may need to fill out a new beneficiary form. Ask the new custodian. See naming beneficiaries on a Gold IRA.

Related questions

Can I close a Gold IRA at any time?

We did not find an IRS rule that sets a closing date. Taxes and the early-withdrawal tax can apply to money that leaves the IRA, and your custodian's own rules and fees set the practical steps.

Is closing an IRA the same as withdrawing?

Not always. A direct transfer closes the old account without a distribution. A withdrawal sends money or metal to you.

Who should I talk to?

A CPA or enrolled agent can model the tax result of each route. Your current and new custodians can explain their own forms, fees and timing.

This page is general education, not tax or legal advice. Tax rules and custodian policies change. Consult a CPA, enrolled agent or attorney about your situation.