What Is a Custodian for a Gold IRA?

Investing in gold is a popular way to diversify assets and protect against inflation. A gold IRA has unique tax benefits that allow you to hold physical gold in a retirement account. Some of these tax advantages include deductions and tax-free withdrawals. 

To get these tax benefits for gold investments, you’ll need a self-directed IRA and an account custodian. This guide explains the role of gold IRA custodians, how to choose one, and the costs involved.

What do gold IRA custodians do?

An IRA custodian can be a bank, life insurance company, trust company, or other entity approved by the IRS. Its job is to hold the assets in an IRA and ensure all account activity complies with IRS regulations. Here’s a look at the duties you can expect an IRA custodian to hold:

Duty	Performed by an IRA custodian?
Implement transactions to buy, sell, or roll over investments	✅
Keep an inventory of assets	✖️
Provide required notices, such as those about required minimum distributions in retirement	✅
Maintain and submit IRS-required records	✅
Provide investment advice	✖️
Evaluate IRA eligibility for gold	✅

When working with a gold IRA custodian, the process typically follows these steps:

• Custodian role: The custodian manages the IRA and its assets, including any gold you choose to add.
• Self-directed control: As the account holder, you are responsible for purchasing gold from a provider and coordinating with the custodian for storage.
• Storage options: The custodian offers storage for your gold at a fee, which varies based on the location.
• Gold evaluation: Before it is sent to storage, the custodian evaluates the gold to ensure it meets the necessary requirements.
• Required minimum distributions (RMDs): The custodian will send you notices regarding any RMDs you must fulfill.

Do I need a custodian to purchase gold?

IRS regulations require that an IRA must be managed by a custodian, including gold IRAs. Gold IRAs require specialized custodians experienced in precious metals to handle your account.

You don’t need a custodian if you plan on buying gold as a personal investment outside of an IRA. If you invest in gold exchange-traded funds (ETFs) or stocks, you also do not need a custodian. However, you won’t reap any of the tax benefits of an IRA, like tax-deferred growth. 

Traditional IRAs, Roth IRAs, and self-directed IRAs all require a custodian to review that the assets meet IRS standards. Simplified employee pension (SEP) IRAs that include gold as an investment option also require a custodian to oversee the account. 

What are the best gold IRA custodians?

A gold IRA custodian oversees IRS compliance and account transactions. Among the many options, Equity Trust Company and STRATA Trust Company stand out for their experience and reputation. 

Equity Trust Company

Many consider Equity Trust Company an industry leader among self-directed IRA custodians. 

Established in 1974, the company has over 40 years of experience managing $52 billion in retirement assets. It’s one of the best at offering a wide range of investments, such as gold, real estate, and cryptocurrency. 

Getting started is as easy as opening a retirement or savings account, funding the account, and making self-directed investments. 

Strata Trust Company

Another top option is STRATA Trust Company, which specializes in alternative assets, including crowdfunding, private debt, and gold. 

Started in 2008, STRATA has $4 billion of assets under its custody and one of the best transparent fee structures. To start working with STRATA, open a STRATA IRA, fund your new IRA, and select a gold dealer to purchase your metals.

Equity Trust Company and STRATA Trust Company are two of the top choices but there are many other gold IRA custodians with excellent services:

• Forge Trust
• GoldStar Trust
• Madison Trust
• Next Generation Trust Company
• The Entrust Group

How to select a gold IRA custodian

Many gold IRA companies work with preferred custodians. However, if you open a self-directed IRA, you can select any custodian supporting a self-directed IRA. When comparing your options, consider the following:

• Fees for account set-up and management
• Privacy and security policies
• Years in business
• Customer reviews
• Turnaround time for transactions
• Customer service availability

Once you’ve narrowed your options, it’s time for a conversation with a representative from the company who can provide more details. Here are some key questions to ask during the conversation:

• Do you specialize in gold and precious metals IRAs?
• Can you send me your fee schedule?
• Will I get to choose the depository that stores my gold?
• How can I withdraw precious metals, and how fast are those transactions completed?
• How are transactions and other reporting requirements communicated to me and to the IRS?
• What are your insurance coverage limits so I know my gold is insured against theft or damage while stored?
• Do I need to know about any exclusions before opening an account?
• If I need help, when and how is customer service available?
• Is my gold insured against theft or damage while stored, and what are the insurance coverage limits and exclusions?
• What sets you apart from other gold IRA custodians?

If a company is evasive or offers vague information, it may be a red flag, and you should consider looking elsewhere for a custodian. Transparency and straightforward communication are the highlights of a good custodian. Take the time to compare your options. 

Our expert’s suggestion

Erin Kinkade

CFP®

I suggest searching for the top three custodians who have been established for the longest period of time, have good reviews, and are reputable financial institutions. Contact each custodian to request fee information and discuss service and reporting structure. If you are uncertain after interviewing at least three custodians, it may help to contact a financial professional to discuss your goals. Discussing with trusted friends or family who have invested in gold IRAs could also be helpful.

What does a gold custodian cost?

Here is a look at the typical costs you should expect to pay to your gold IRA custodian:

Fee	Typical amount
Setup	$50
Annual maintenance	$100 – $400
Storage fees	Tiered or flat fee, minimum of $100
Transaction fees	$50 – $75

Here’s what to know about these costs.

• Setup fee: This is the cost to establish your self-directed IRA. A $50 charge is most common, but fees can vary. A few custodians, such as IRA Financial Trust, have no setup fee.
• Annual maintenance fee: Annual fees could be a percentage of the value of your assets, but a flat fee is more common for gold IRAs. These fees can vary from $100 to $400 or more.
• Storage fees: To qualify for the tax benefits of a gold IRA, you must store your precious metals in an approved depository. Custodians often collect storage fees. Tiered fees based on the value of investments are common—such as $1 per $1,000 of assets, with a minimum fee of $100. Some companies charge flat fees.
• Transaction fees: These fees may be assessed when assets are moved in and out of your IRA. For instance, Accuplan Benefit Services charges $75 for in-kind distributions of precious metals—when the metals are sent to you—or $50 to liquidate metals into cash.

Fees can vary, so it’s important to request and review a fee schedule. Custodians may charge low fees in one category but then assess more elsewhere. For instance, IRA Financial Trust may waive the setup fee, but it charges a $400 annual fee and a $75 transaction fee for standard processing within 48 hours.

Costs are an important consideration in selecting a gold IRA custodian, but they shouldn’t be the only factor you consider. Consider the cost along with a company’s reputation, responsiveness, and processing times.

What are the risks and limitations of an IRA custodian for gold?

For self-directed IRAs, such as gold IRAs, the role of a custodian is limited. According to the U.S. Securities and Exchange Commission, custodians are only responsible for holding and administering assets. They do not:

• Sell investment products
• Provide investment advice
• Evaluate the quality or legitimacy of an investment
• Verify the accuracy of financial information provided for an investment

Our expert’s warning

Erin Kinkade

CFP®

A few risks of choosing the wrong custodian include choosing a company based solely on low fees and costs, which could result in poor customer service or issues such as a lapse in reporting requirements. Not being in compliance with the SEC or IRS could result in potential excise fees or losing the tax benefits of a gold IRA, creating a large taxable event for the owner. A lack of understanding about the investment could result in an undesirable investment that affects financial and life goals, such as, for example, having a high concentration in a gold IRA compared with total assets.

The SEC notes: “With a self-directed IRA you have sole responsibility for evaluating and understanding the investments in the account.”

Choosing the wrong custodian could expose you to several risks, so it’s important to know how a gold IRA works and what investments are allowed.

FAQ

Is a gold IRA custodian the same as a gold IRA company?

These terms can seem interchangeable, but they are not the same. The IRS approves a gold IRA custodian to hold and administrate the assets in a self-directed IRA account. 

A gold IRA company could mean many things, but it often refers to a business that sells gold products and assists customers in setting up a gold IRA. 

Can I switch gold custodians later?

Yes, you can switch gold IRA custodians if needed. Your assets can be moved to a new company with a process called a rollover. Moving your gold may incur a cost, so avoid any delays by working with a gold custodian that handles transfers.

Do custodians provide insurance for stored gold?

Yes, custodians provide insurance for your gold against theft or damage while stored in an approved depository. Ask the custodian about insurance coverage limits and any exclusions before opening an account.

Gold is not insured against financial loss due to market fluctuations.

Are the companies above approved gold and silver IRA rollover custodians?

Yes, the companies mentioned are approved to handle gold and silver IRA rollovers. A rollover involves moving funds from one IRA and then depositing them into a new IRA within 60 days. This process can only be done once per year and may have tax implications.

How fast can I access my gold if I need it?

That depends on your custodian and whether you are selling your gold for cash or requesting an in-kind distribution of physical gold. Some custodians can complete these transactions in a few days, while others might take a week or longer. Be sure to ask about transaction turnaround times before signing up with a gold IRA custodian.

What happens to my gold if the custodian goes bankrupt?

The custodian doesn’t own your gold; you do. So if the custodian goes bankrupt, your gold is safe from creditors. You can transfer your gold to a new custodian without losing your assets. 

For added security, confirm that the custodian and the depository keep your gold off their balance sheets.