Palladium IRA: Eligible Coins, Bars and Considerations

Palladium is one of four metals named in the tax code's bullion exception, and it follows a different path from gold, silver and platinum. This page explains that path, the U.S. Mint's palladium coin, and what to ask before buying. It is part of our guide to IRA-eligible precious metals.

This page explains rules. It does not say whether palladium belongs in your retirement plan. That depends on your situation, so talk with a qualified financial adviser or tax professional.

Can you hold palladium in an IRA?

Yes, if it fits an exception. The tax code treats "any metal or gem" and "any stamp or coin" as collectibles (26 U.S.C. 408(m)). When an IRA acquires a collectible, the IRS says the owner "is deemed to receive a distribution" in the year of purchase, in the amount of the cost (IRS). See our collectibles rule guide.

The IRS page lists the bullion exception as "Any gold, silver, platinum, or palladium bullion of a certain fineness," and adds that it applies "if a bank or approved non-bank trustee keeps physical possession of it." Palladium is named in that bullion clause.

Why is palladium handled differently from the other metals?

The coin exception in section 408(m)(3)(A), as we read it, names gold coins (31 U.S.C. 5112(a)), silver coins (5112(e)), platinum coins (5112(k)) and coins issued under state law. It does not name palladium coins. Palladium therefore reaches the IRA through the bullion exception.

This is our reading of the statute, not an IRS statement, and it needs professional review. It matters in practice because the bullion route uses a purity test and a trustee-custody condition, as described below.

What fineness must palladium meet?

The statute does not print a number. It uses the minimum fineness that a regulated futures market requires for deliverable metal. The NYMEX palladium chapter, published by CME Group, says: "Palladium delivered under this contract shall be a minimum of 99.95% pure and must be a brand approved by the Exchange" (CME Group). That is .9995.

The statute points to the fineness standard. We did not find language in the statute requiring an IRA bar to carry an exchange-approved brand, but your custodian or depository may set its own product list. Because the exchange can change its rule, check the current rule rather than relying on a figure on a dealer's page.

What palladium products exist?

The U.S. Mint offers an American Eagle palladium bullion coin. The Mint's page lists:

The Mint says the coin was authorized by Congress in 2010 and first issued in 2017, and calls it "the only palladium bullion coin whose weight, content, and .9995 purity are guaranteed by the United States Government" (U.S. Mint). One caution: the specifications table on that page lists the composition as "99.95% Platinum," which appears to be a typing error on the Mint's page. We rely on the purity and description text, and you should confirm details with the Mint's current product page.

The statute describes the coin too. Section 5112(a)(12) covers a coin that "weighs 1 troy ounce and contains .9995 fine palladium," and subsection (v) says the Secretary "shall mint and issue" it (31 U.S.C. 5112). The Mint lists the weight at 1.005 troy ounces, which is more than the statute's one ounce, and a $100 face value, while the statute's paragraph calls it a "$25 coin." We did not find a source that explains these differences, so we do not guess; confirm the product details with the Mint.

Whether the palladium Eagle qualifies under the bullion route is a question of its fineness and custody. At .9995 it equals the 99.95% in the NYMEX rule. We did not find IRS guidance naming this coin, so ask your custodian whether it accepts the specific product. Palladium bars follow the same fineness test.

What are the considerations specific to palladium?

• Custody still applies. The metal has to be held for the account by a bank or approved non-bank trustee. See our guide to custodian, dealer and depository roles.
• Costs and spreads. FINRA and the CFTC warn that dealer spreads can be large and that if the spread is too high, "as in most frauds, it's impossible for buyers to ever profit" (FINRA and CFTC). Ask for buy and buyback prices for the exact product, in writing.
• Market depth. We did not open a source that measures how easily palladium products resell compared with gold or silver, so we make no comparison. Ask for a written buyback quote and how long a sale takes.
• Price movement. Palladium prices change. We do not predict them, and the metal carries the same price risk as any commodity. See our Gold IRA risks hub.
• Accepted products. Custodians and depositories set their own product lists. Ask each one, in writing, whether it accepts the exact palladium product.

What are common mistakes?

• Assuming that because palladium is named in the statute, any palladium item qualifies. It must meet the fineness test and be held by a trustee.
• Relying on a seller's "IRA approved" label as a tax ruling.
• Mixing up the Mint's palladium coin with collector or proof versions. See proof coins.
• Buying without comparing the quote with the spot price.

Related questions

How does platinum compare? It has a coin exception as well as the bullion route. See our platinum IRA guide.

What about collector coins? See bullion vs numismatic coins.

This page is general information. How the statute applies to a given product is a legal reading, so ask a tax professional or attorney before you buy.