The education library
Gold IRA Glossary
Plain-English meanings of the terms you'll meet when researching a gold IRA, from custodian to spread. Each one links to the guide that explains it in more detail.
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- 10-year rule
- Under the SECURE Act, most non-spouse beneficiaries must empty an inherited IRA by the end of the 10th year after the year the owner passed away. Read: Inheriting a gold IRA
B
- Beneficiary
- The person or people you name on the custodian's form to receive the account after you pass away. In most cases the form overrides a will. Read: Inheriting a gold IRA
- Buyback
- An offer by a dealer to buy back metal it sold you. Terms differ between companies, and some don't offer one. Read: Taking money out of a gold IRA
C
- Commingled storage
- Storage where your metal is kept together with identical products owned by others. You own your ounces and get back like-for-like metal, not necessarily the same coins. Also called non-segregated storage. Read: What is a depository?
- Contingent beneficiary
- A backup beneficiary, who inherits if the primary beneficiary has passed away. Read: Inheriting a gold IRA
- Custodian
- The IRS-approved company that holds your IRA on paper, keeps the records and processes withdrawals. It is often not the company that sold you the metal. Sometimes called a trustee. Read: What is a gold IRA?
D
- Depository
- An insured vault facility where IRA metal is stored, usually chosen through the custodian. IRA metal can't be kept at home. Read: What is a depository?
- Distribution
- Any money or property that leaves the IRA and comes to you. Distributions from a traditional IRA are generally taxable. Read: Taking money out of a gold IRA
E
- Eligible designated beneficiary
- The IRS term for heirs who get more time than the 10-year rule allows, such as the owner's minor children, heirs who are disabled or chronically ill, and heirs no more than 10 years younger than the owner. Read: Inheriting a gold IRA
F
- Fineness
- How pure a piece of metal is. A coin marked .9999 fine is 99.99 percent gold. IRA metal must meet minimum fineness rules in the tax code. Read: How physical bullion is priced
- Form 1099-R
- The tax form the custodian sends you showing the value of a distribution. Read: Taking money out of a gold IRA
G
- Gold IRA
- A self-directed IRA that holds eligible physical precious metals, such as gold coins and bars, instead of or alongside stocks and funds. Read: What is a gold IRA?
I
- In-kind distribution
- Taking the coins or bars themselves out of the IRA instead of their cash value. For a traditional IRA, the metal's value on that day is generally taxed as income. Read: Taking money out of a gold IRA
- Inherited IRA
- The account an heir receives, titled with the original owner's name and theirs. A non-spouse heir can't roll it into their own IRA. Read: Inheriting a gold IRA
- IRA (individual retirement account)
- A retirement savings account with tax advantages. Comes in two main forms: traditional and Roth. Read: What is a gold IRA?
P
- Probate
- The court process for settling an estate. An IRA with no named beneficiary often goes through it, which tends to be slower. Read: Inheriting a gold IRA
R
- RMD (required minimum distribution)
- The minimum amount the IRS requires you to take out of a traditional IRA each year once you reach a set age, generally 73 under current law. Read: Taking money out of a gold IRA
- Roth IRA
- An IRA funded with money you've already paid tax on. Qualified withdrawals are generally tax-free, and the original owner has no required withdrawals. Read: Taking money out of a gold IRA
S
- Segregated storage
- Storage where the exact coins or bars you bought are kept apart under your account. It usually costs more than commingled storage. Read: What is a depository?
- Self-directed IRA
- An IRA that can hold assets a regular brokerage account won't, such as physical metal. A gold IRA is one kind. Read: What is a gold IRA?
- Spot price
- The published market price for one ounce of a metal right now. Dealer prices for bullion are compared against it. Read: How physical bullion is priced
- Spread
- The difference between the price a dealer sells metal at and the price it buys it back at. It's a real cost, and it varies by dealer and product. Read: Gold IRA fees explained
T
- Traditional IRA
- An IRA where withdrawals are generally taxed as ordinary income and yearly required withdrawals (RMDs) apply once you reach a set age. Read: Taking money out of a gold IRA
These definitions are general education, not financial, tax or legal advice. Rules change, so confirm details with your IRA custodian or a qualified tax professional. We are a reader-supported publication and may be paid by companies featured on this site.