Gold IRA Setup

Step 1: How do you choose a self-directed IRA custodian?

Compare at least three IRS-approved custodians before opening an account. Five comparison points matter most: BBB rating (A+ or A preferred), years in business (10+ signals stability), published fee schedule (custodians that publish fees on their website rather than only by phone), depository options (Brink's, Delaware Depository, IDS, HSBC Bank are the most common), and online portal quality (24/7 access vs paper-form processing).

Cost at this step: $0 (research is free). Time: 1-3 days for comparison and decision. The full evaluation framework lives in Gold IRA custodians. Verify your shortlist matches your situation before moving to paperwork.

Step 2: What paperwork is required to open the account?

Three documents complete account opening: the custodian's self-directed IRA application (typically 4-8 pages), the beneficiary designation form, and identity verification documents (usually a driver's license copy and Social Security number). The custodian opens the account within 1-3 business days of receiving a complete package.

Cost at this step: $50-$200 setup fee (one-time, charged by the custodian). Most custodians waive this fee for accounts above $50,000, though that waiver may correspond to higher fees elsewhere in the stack — see Gold IRA fees for the full breakdown.

Step 3: How do you fund a Gold IRA?

Three funding methods exist: rollover from an employer plan (401(k), 403(b), TSP), transfer from another IRA (trustee-to-trustee, simplest), or annual contribution ($7,000 in 2026, $8,000 if 50 or older). Most Gold IRAs are funded by rollover or transfer rather than fresh contributions because the account thresholds ($25,000+) make annual contribution funding inefficient.

Funding timelines vary by method. Direct rollover from a 401(k): 5-21 business days. Trustee-to-trustee transfer between IRAs: 3-10 business days. Annual contribution: same day if funded by ACH or wire.

Cost at this step: $25-$50 wire fee on the receiving end (some custodians waive). Indirect rollovers carry tax risk if not completed within 60 days. The Rollover Tax Trap Visualizer shows the math for your specific situation, and Gold IRA rollover covers the procedural rules in detail.

Step 4: How do you select IRS-eligible metals?

The custodian connects you with a dealer (or you choose your own). Three product categories qualify: bullion coins meeting IRC § 408(m)(3)(A) statutory exception (American Gold Eagle, American Buffalo, Canadian Maple Leaf, etc.), bullion bars meeting fineness standards (gold ≥99.5%, silver ≥99.9%, platinum and palladium ≥99.95%), and proof coins of approved series. Most investors choose 1-ounce gold coins or bars for liquidity at buyback time.

Cost at this step: 3%-10% dealer markup over spot price. On a $50,000 metals purchase, that translates to $1,500-$5,000 in markup. Get the markup in writing before placing the order — the markup is the largest single cost in the Fee Stack and the least transparent. The IRA-eligible metals reference lists which products qualify and which do not.

Step 5: How does depository storage get arranged?

The custodian instructs the depository to receive and store the metals from the dealer. You choose between segregated storage (your specific bars and coins kept in a labeled compartment, retrievable in-kind) and commingled storage (metals pooled with other investors, redeemed in equivalent weight and purity). Segregated typically costs $50-$150 more per year; the choice affects your in-kind distribution options at retirement.

Cost at this step: $100-$300 per year for storage and insurance, billed annually or quarterly. Storage begins on the day the depository confirms receipt — typically 3-10 business days from your purchase. The IRS requires depository storage; home storage is illegal under IRC § 408(m)(3)(B) — see home storage Gold IRA for why.

What is the total Gold IRA setup time and cost?

Total setup time runs 2 to 4 weeks for most accounts, longer if the funding source is an employer 401(k) requiring administrator processing. Total first-year cost on a $50,000 account: $1,800 to $5,300 depending on dealer markup and custodian fee structure. Total first-year cost on a $100,000 account: $3,000 to $10,500.

Use the Fee Estimator to model your specific scenario across different account sizes and provider assumptions.

What setup mistakes cost investors money?

• Choosing a custodian based only on the lowest setup fee. The setup fee is the smallest cost in the Fee Stack. A waived setup fee often corresponds to a higher dealer markup that costs $1,000–$5,000 more on a $50,000 purchase.
• Accepting the dealer's first product recommendation. Some dealers steer investors toward higher-margin products (proof coins, semi-numismatic) that carry 15–30% markups instead of 3–6% bullion markups.
• Requesting an indirect rollover when a direct rollover would work. Indirect rollovers carry 10% (IRA) or 20% (qualified plan) withholding plus 60-day risk. Direct rollovers avoid both.
• Not getting the dealer markup in writing. Verbal markup quotes are unenforceable. Get the per-ounce price and the spot reference in writing before the trade.
• Skipping the depository segregation choice. Default commingled storage is cheaper but limits in-kind distribution options. Decide consciously based on your distribution preferences.