Graded coins, even those judged to be in flawless MS-70 condition, cannot be included in a self-directed Individual Retirement Account (SDIRA) or precious metals IRA.
Why are Graded Coins Ineligible for Use in an IRA?
Graded coins are not eligible for use in IRAs. These coins are considered numismatic investments as opposed to precious metal investments. Graded coins fall into the collectible category of assets in the view of the Internal Revenue Service (IRS) which precludes eligibility in an IRA. Beyond that, it is worth reviewing the lists of IRA-approved products. There are specific products approved for eligibility.
What Makes a Gold or Silver Coin IRA eligible?
- It cannot be graded.
- It cannot be stored in your home.
- Specified purity that varies by metal.
There are a few qualifying factors for eligibility in a self-directed individual retirement account (SDIRA) or precious metals IRA. As covered above, one factor is that the coin cannot be a graded coin, as these are considered collectible items under the law.
Another crucial detail governing precious metal IRAs is that they may not be stored in your home. The gold, silver, platinum, and palladium coins, rounds, or bars you put in a precious metals IRA must be stored with a custodial party created in or organized in the United States.
Required Purity for Precious Metal IRA Products
The purity of the precious metal in the coin or bar is another qualifying element.
| Metal | Gold | Silver | Platinum | Palladium |
| Fineness | 99.5% (.995) | 99.9% (.999) | 99.95% (.9995) | 99.95% (.9995) |
IRA-Approved Gold American Eagles
If you are wondering about the millesimal fineness of the American Gold Eagle compared to the South African Gold Krugerrand, they have roughly the same composition. Both gold coins have a 91.67% gold content and contain one troy ounce of fine gold, as they both weigh more than one troy ounce. Why can one go into your precious metals IRA and the other cannot?
The Gold Bullion Coin Act of 1985 authorized the United States Mint to produce gold bullion coins in $5, $10, $25, and $50 denominations. The Act specified the total weight of each gold coin, the weight of gold to be included in each coin, and elements of the design. One other provision made by the Act was delineating that “all coins minted under this subsection shall be considered to be numismatic items.”
Other Coins Eligible for Gold IRAs
Some other gold coins and products that may be eligible for inclusion in a precious metals IRA include the:
- American Gold Buffalo
- Gold Canadian Maple Leaf
- Australian Gold Koala
- Gold PAMP Bars
Consult the list of IRA-approved gold products before making your next purchase.
What Gold Coins are Not IRA-Eligible?
In addition to the South African Gold Krugerrand, the Chinese Gold Panda is not eligible for precious metal IRAs. In addition to these bullion coins, the gold Swiss Franc, British Sovereign, and German Mark are also ineligible for gold or precious metals IRAs.
IRA-Approved Silver American Eagles
Unlike the rules for gold coins and products, the rules governing the inclusion of silver products in a precious metals IRA are relatively lax. For instance, South African Silver Krugerrands may be eligible for precious metals IRAs if they are not graded, even though Gold Krugerrand are not eligible.
Many silver rounds and bars are also eligible for inclusion in a precious metals IRA. Find the list of IRA-approved silver products if you are planning to add silver to a precious metals IRA.
Other Coins Eligible for Silver IRAs
- Canadian Silver Maple Leafs
- Australian Silver Kangaroos
