Gold Fineness and Purity Requirements for IRAs

"How pure does gold have to be for an IRA?" sounds like it should have one number for an answer. It doesn't. The tax code handles purity in two different ways, depending on whether the item is a coin described in the statute or a bar and other bullion. This page explains both, what "fine" means, and how to read the marks on a coin or bar. It sits under our guide to IRA-eligible precious metals, which covers silver, platinum and palladium too.

What purity must gold be to go in an IRA?

There is no single freestanding purity rule. Section 408(m) of the Internal Revenue Code starts by treating gold as a "collectible," which is the tax code's name for items like art, gems and most coins and metals. It then carves out exceptions. The IRS summarizes the metals exception as: "Any gold, silver, platinum, or palladium bullion of a certain fineness if a bank or approved non-bank trustee keeps physical possession of it."

The two routes work like this:

For the bigger picture of why metals are treated this way, see the IRA collectibles rule.

What does "fineness" mean?

Fineness is the share of a coin or bar that is pure gold. It is usually written as parts per thousand, or as a decimal. A fineness of .995 means 995 parts of every 1,000 are gold. The rest is other metals. A fineness of .9999 means 9,999 parts in 10,000, or 99.99% gold.

Purity is the everyday word for the same idea. "Karat" is a different way of labeling gold content. The U.S. Mint, for example, calls its American Eagle a "22-karat coin" while listing its composition as 91.67% gold, so karat and fineness figures are not interchangeable labels.

What does .9999 fine mean?

It means 99.99% gold. The U.S. Mint lists its American Buffalo one-ounce gold coin at "99.99% gold" with "1.000 troy ounce" of gold. The Mint states gold weight in troy ounces, the unit it uses for precious metals.

How does the bullion rule work?

The statute, 26 U.S.C. 408(m)(3)(B), excludes from the collectibles definition:

"any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market (as described in section 5 of the Commodity Exchange Act, 7 U.S.C. 7) requires for metals which may be delivered in satisfaction of a regulated futures contract"

It then adds a condition: "if such bullion is in the physical possession of a trustee described under subsection (a) of this section."

Three things follow from the wording.

• The law borrows its standard. The statute does not write "99.5%" or any other number. It points to what a regulated futures market requires for metal delivered under its contracts.
• The standard can sit outside the tax code. Because it refers to an exchange's requirements, the number comes from the exchange's own rules.
• Custody is part of the test. The metal has to be in a trustee's physical possession, not yours.

What fineness does a futures exchange require?

One example is the gold contract of COMEX, a CME Group exchange. Its rulebook, Chapter 113, Rule 113101, says: "Gold delivered under this contract shall assay to a minimum of 995 fineness and must be a brand approved by the Exchange."

That is where the often-quoted ".995" for gold bars comes from. We cite it as an example of an exchange standard that the statute points to, not as a rule written into the tax code. We did not review every regulated exchange's rules for this page, and exchange rules can change. Your custodian will tell you which products it accepts.

Are the same numbers used for silver, platinum and palladium?

Not necessarily. Each metal has its own exchange standard. This page covers gold only, so check the pillar guide on IRA-eligible precious metals and the Silver IRA page for the other metals.

Why is the American Gold Eagle treated differently?

The American Gold Eagle is not 99.5% gold. Our reading is that it does not need to be, because it appears to fall under a different route: the coin exceptions rather than the bullion test. Section 408(m)(3)(A)(i) excepts "a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31," and those paragraphs describe the coin by size, weight and fine-gold content. According to 31 U.S.C. 5112, paragraph (a)(7) is "A fifty dollar gold coin that is 32.7 millimeters in diameter, weighs 33.931 grams, and contains one troy ounce of fine gold."

The statute states a weight of fine gold in each coin, not a fineness percentage. The one-ounce coin weighs more than one troy ounce because it contains other metals alongside the gold. The Mint lists the 2026 one-ounce gold American Eagle composition as "91.67% gold, 3% silver, balance copper," with "1.000 troy ounce" of gold. The Mint's product page describes it as a "22-karat coin."

So an Eagle can be less pure than a bar and still be on the statute's list. A bar of the same 91.67% purity would not meet the .995 example above.

Does that make a 22-karat coin "better" or "worse" than a .9999 coin?

Neither. The statute does not rank metals by purity. A coin in the statute's list qualifies because it is "described in" the listed paragraphs of 31 U.S.C. 5112. Bullion qualifies by meeting the fineness test and trustee custody. The Mint's American Buffalo coin, at 99.99% gold, is a $50 coin with 1.000 troy ounce of gold. We did not verify in this review which route it falls under, so see American Gold Buffalo and ask your custodian.

What are common gold products and where do they fit?

This table applies the statute's wording to common items. It is a summary, not a ruling on any specific product.

For how dealers separate bullion from collector coins, see bullion versus numismatic coins. The gold coins guide describes specific coins that people ask about.

How do I read the marks on a coin or bar?

Marks help you confirm what you are buying. They are not proof of IRA eligibility.

• Fineness. A number such as 999.9 or .9999 is a fineness figure, as described above. The U.S. Mint lists its coins' gold content on the product page (for example "99.99% gold").
• Weight. Usually shown in troy ounces, grams or kilograms. For coins described in the statute, the statute lists weights and fine-gold content, so compare the markings with those figures.
• Refiner or brand. The COMEX rule quoted above requires that delivered gold be "a brand approved by the Exchange." That is the exchange's own rule, and your custodian may have its own list of accepted brands.

Check what is stamped on the item against what your custodian approved in writing before the purchase.

What mistakes should I avoid?

• Assuming high purity alone qualifies. The bullion route also requires that a trustee hold the metal. The IRS says the trustee must keep "physical possession of it."
• Assuming low purity disqualifies a listed coin. A coin qualifies under that exception by being "described in" the statute, not by hitting .995.
• Mixing up karat and fineness. A karat mark is not the same label as a fineness figure. The Mint lists its Eagle as a 22-karat coin and as 91.67% gold.
• Treating an exchange rule as permanent. The bullion standard depends on futures-market requirements, which are set by the exchanges. Confirm the current standard with your custodian.
• Buying first and asking later. If an IRA buys something that is a collectible, the IRS says the cost is treated as a distribution. See the collectibles rule for what happens.

Related questions

Does the 91.67% Gold Eagle count as "bullion"?

Our reading is that it falls under the coin exception in 408(m)(3)(A), so it does not need to meet the bullion fineness test. We did not find IRS guidance addressing this exact point in the sources reviewed. A tax professional can confirm how it applies to you.

Can I keep IRA gold at home if it is pure enough?

The statute's bullion exception requires physical possession by a trustee. See home storage and Gold IRAs.

Who decides which products are accepted?

In practice your custodian does. Ask it in writing before you buy. See what a custodian does.

This page is general education, not tax, legal or investment advice. Confirm whether a specific coin or bar is eligible with your IRA custodian and a qualified tax professional before you buy.