Silver in an IRA or 401(k)

US law treats metals and coins bought by an IRA as 'collectibles', which counts as a taxable distribution, except for American Eagle coins, state-issued coins, and high-fineness gold, silver, platinum and palladium bullion held by the trustee. The Tax Court's McNulty decision (2021) shows that keeping IRA metal at home can trigger tax and penalties.

Facts checked 26 October 2026 · Not financial, legal or tax advice

Traditional and Roth IRA (including self-directed IRAs)

What is allowed: Same rules as gold. The exceptions cover the US silver coin in 31 U.S.C. 5112(e) (the American Eagle silver coin), state-issued coins, and silver bullion at least as fine as a regulated futures contract requires, held by the trustee. Platinum and palladium bullion, and the US platinum coin in 5112(k), are also covered.

Storage: Bullion qualifies only if it is in the physical possession of a trustee: a bank or another person the IRS approves (408(a)(2), 408(m)(3)). In McNulty v. Commissioner, 157 T.C. No. 10 (2021), the Tax Court held that American Eagle coins bought by an IRA-owned LLC and kept in the owner's home safe were taxable distributions. The court rejected the argument that the trustee-custody rule applies only to bullion and not to the coins.

Tax: An IRA is generally exempt from tax (408(e)(1)). If an IRA buys a collectible, the cost is treated as a distribution. The IRS says this is generally taxed as ordinary income, the 10% additional tax may apply under age 59 1/2, and the owner then has basis in that amount. A prohibited transaction can end IRA status from the first day of that tax year (408(e)(2)).

Watch out for:

Keeping IRA coins or bars at home, even through an IRA-owned LLC, led to taxable distributions and accuracy-related penalties in McNulty (2021).
Coins not listed in 408(m)(3)(A) count as collectibles unless they qualify as bullion under 408(m)(3)(B); bullion below the futures-contract fineness is a collectible. Buying a collectible is a deemed distribution.
Buying a collectible for the personal use of a disqualified person may also be a prohibited transaction under IRC 4975(c), per the IRS.
IRAs cannot invest in life insurance contracts (408(a)(3)).

401(k) and other employer plans with participant-directed accounts

What is allowed: Same as gold: the 408(m) collectibles rule and its exceptions apply to individually directed plan accounts.

Storage: For metals in individually directed accounts, the IRS says bullion is excluded from collectibles only if a bank or approved non-bank trustee keeps physical possession of it.

Tax: Buying a collectible in an individually directed account is treated as a distribution equal to its cost; the IRS says this is generally taxed as ordinary income and the 10% early-withdrawal tax may apply.

Watch out for:

The 2026 DOL proposed rule was not confirmed as final at the time of research.

Other countries: UK · Canada · Australia · all countries

FAQ

Can I hold silver in an IRA?

Yes, if it qualifies: the American Silver Eagle, coins issued by a US state, and silver bullion at least as fine as a regulated futures contract requires, held by the IRA trustee. Other silver coins count as collectibles, and an IRA buying one is treated as a taxable distribution.

What happens if an IRA buys a collectible?

The cost is treated as a distribution. The IRS says it is generally taxed as ordinary income, and the 10% additional tax may apply if the owner is under 59 1/2.

Sources (6)

General information from official sources, checked October 2026. Rules for retirement accounts are complex and change; check with your plan provider, a tax adviser or the tax authority before you invest. Not financial, legal or tax advice.