Gold IRA Withdrawals: How to Withdraw Gold From Your IRA

The withdrawal rules must be understood for Gold IRAs before you consider any sort of action in taking out funds. Whether you’re planning to take distributions in cash or physical gold, knowing the IRS guidelines, penalties for early withdrawals, and tax implications can help you avoid costly mistakes.
Focus on the User outlines what you need to know from Required Minimum Distributions (RMDs) to special circumstances like inheritance or divorce, making the withdrawal process easy to understand.
- Withdrawals from a Gold IRA are subject to age-based rules, with penalty-free access starting at age 59½ and Required Minimum Distributions beginning at 73.
- Physical gold can be withdrawn directly from your Gold IRA, but its fair market value will determine the taxable amount.
- Early withdrawals before age 59½ incur a 10% penalty and taxes unless exceptions, such as medical expenses or disability, apply.
- Special situations like inheritance, divorce, or using gold in real estate transactions have unique rules and tax considerations to navigate effectively.
How Withdrawals Work in Gold IRAs
Withdrawals from a Gold IRA can be made in two primary forms: cash or in-kind (physical gold). When withdrawing in cash, the custodian sells the gold in your account and provides the equivalent value. In-kind withdrawals allow you to take possession of the actual physical gold held in your IRA, however this is subject to IRS valuation rules and taxes.
In-kind withdrawals are particularly beneficial for those who want to retain the tangible asset itself, rather than convert it to cash. However, they come with specific considerations, such as fair market value assessments and potential storage or transport costs once the gold is no longer in the IRA. These can potentially add fees you weren't originally planning for, so just make sure to factor these in.
There are various situations that might prompt withdrawals from your Gold IRA. Common examples include meeting Required Minimum Distributions (RMDs) at age 73, supplementing Social Security benefits to cover retirement expenses, or responding to unexpected financial emergencies. Each scenario involves its own set of rules, penalties (if applicable), and tax implications, all three which must be carefully understood so you can maximize the benefits of your Gold IRA.
Qualified Distributions
Qualified distributions from a Gold IRA involves penalty-free withdrawals that meet IRS age and tax requirements. To qualify, you must be at least 59½ years old. At this point, withdrawals are no longer subject to the 10% early withdrawal penalty, though they are still taxed as ordinary income for Traditional Gold IRAs.
For Roth Gold IRAs, qualified withdrawals offer a significant tax advantage. If the account has been open for at least five years, distributions are entirely tax-free, including any gains. This makes Roth Gold IRAs particularly attractive for long-term retirement planning.
Early Withdrawal Penalties and Exceptions
Withdrawing from a Gold IRA before reaching the age of 59½ typically incurs a 10% early withdrawal penalty in addition to ordinary income taxes on the amount withdrawn. This rule applies to both cash and in-kind (physical gold) distributions, making early withdrawals costly for most investors.
Exceptions to Early Withdrawal Penalties
The IRS provides several exceptions that allow penalty-free early withdrawals under specific circumstances. These include:
- Disability: If the account holder becomes permanently disabled.
- Medical Expenses: Withdrawals to cover unreimbursed medical expenses exceeding 7.5% of adjusted gross income.
- Higher Education Costs: Certain educational expenses for yourself, your spouse, or dependents.
- First-Time Home Purchase: Up to $10,000 can be withdrawn penalty-free for purchasing your first home.
- Substantially Equal Periodic Payments (SEPP): Scheduled, equal withdrawals over a specified period can also avoid penalties.

Required Minimum Distributions (RMDs)
RMDs are required for Traditional Gold IRAs starting at age 73. Each year, you must withdraw a specific minimum amount, calculated based on your account balance and life expectancy. The IRS uses the fair market value (FMV) of the gold held in the IRA as of December 31 of the previous year to determine the RMD amount.
Physical Gold for RMDs
RMDs can be taken in physical gold instead of cash. To satisfy the RMD, the custodian will transfer gold to you at its fair market value, based on current pricing. While this allows you to retain the gold’s physical value, it triggers taxable income based on the FMV of the gold distributed, potentially impacting your tax liability.
Missed RMD Penalty
Failing to meet RMD requirements results in a 50% excise tax on the amount not withdrawn. For instance, if your RMD was $10,000 and you failed to withdraw it, you could face a $5,000 penalty. To avoid penalties, plan RMD withdrawals early each year and consult your custodian to ensure compliance.
Withdrawal Rules by Age
The rules for withdrawing from a Gold IRA vary significantly based on your age, with key milestones at 59½, 72, and beyond.
Under 59½ Withdrawal Rules
Withdrawals made before reaching age 59½ are subject to a 10% early withdrawal penalty on top of ordinary income taxes. This rule applies to both cash and in-kind (physical gold) distributions set by the IRS. Exceptions exist for certain situations, such as disability, medical expenses exceeding 7.5% of adjusted gross income, or distributions made under a Substantially Equal Periodic Payment (SEPP) plan.
Age 59½ to 72 Withdrawal Rules
After reaching age 59½, you can withdraw from your Gold IRA without incurring the 10% early withdrawal penalty. However, the value of the withdrawal, whether in cash or physical gold, is taxed as ordinary income. During this period, you have the flexibility to make strategic withdrawals without the burden of RMDs, enabling tax-efficient planning based on your financial needs.
Age 72 and Older Withdrawal Rules
At age 73 (starting 2023), RMDs become mandatory for Traditional Gold IRAs. You must withdraw a minimum amount each year, based on the fair market value of your account and your life expectancy. RMDs can be taken in cash or physical gold, but both are subject to ordinary income tax.
Special Situations for Gold IRAs
Gold IRAs come with unique rules for specific scenarios. Inherited Gold IRAs allow spousal beneficiaries to absorb the IRA or continue it, while non-spousal beneficiaries must follow RMD or liquidation rules. During divorce, Gold IRAs can be divided under a Qualified Domestic Relations Order (QDRO), with potential tax implications. Additionally, gold within a self-directed IRA can be used for real estate transactions, but strict IRS rules and valuation guidelines must be followed to avoid penalties.
Tax Rules When Holding Gold in an IRA
Gold IRAs benefit from tax-deferred growth, meaning earnings on the gold remain untaxed until withdrawal. When you take distributions, the amount withdrawn is taxed as ordinary income. Roth Gold IRAs then instead allow for tax-free withdrawals in retirement since contributions were made post-tax.
Contribution Limits in Gold IRAs
Annual contributions to Gold IRAs are capped at $6,500 for individuals under 50 and $7,500 for those 50 and older (as of 2024). These limits impact how much you can directly contribute to your IRA but do not restrict rollovers or transfers from existing accounts.
Withdrawal FAQ
Withdrawals from a Gold IRA are taxed as ordinary income if the account is a Traditional IRA. Roth Gold IRAs allow tax-free withdrawals if the account has been open for at least five years, and contributions were made with after-tax dollars.
Physical gold can be withdrawn from a Gold IRA through an in-kind distribution. The fair market value of the gold at the time of withdrawal is reported as taxable income and may incur a penalty if withdrawn before age 59½.
The IRS values gold for RMDs based on its fair market value on the last day of the previous year, using published spot prices or approved valuation methods.
During a 60-day rollover to a Gold IRA, withdrawn funds must be redeposited into another IRA within 60 days to avoid taxes and penalties. Only one such rollover is allowed per 12-month period. There are no exceptions.
Spousal beneficiaries can absorb the Gold IRA into their own account or treat it as an inherited IRA. Non-spousal beneficiaries must follow inherited IRA rules, either taking RMDs or liquidating the account within ten years.
Why Focus on the User Covers Withdrawal Rules in Gold IRAs
On the surface withdrawing from your Gold IRA may seem simple enough, but really the rules and regulations behind it make it very important to doing it right. Focus on the User has laid out the ways you can withdraw funds from your Gold IRA, the safe and legal way, avoiding expensive penalties.
Wait! Don't Invest In a Gold IRA Just Yet..

Our free eBook helps you plan your Precious Metals IRA, and avoid penalties and hidden fees.