IRA-Eligible Platinum and Palladium

Most investors know that gold and silver can be held in a self-directed IRA (Individual Retirement Account). Fewer know that the IRS also authorizes two additional metals for IRA inclusion: platinum and palladium. This means investors who want exposure to the broader platinum group metals (PGMs) space have the option to do so within the tax-advantaged structure of a retirement account — a meaningful benefit for long-term holders.

Understanding the rules, eligible products, custodian requirements, and practical logistics is essential before opening a precious metals IRA that includes platinum or palladium. This guide walks through everything you need to know.

The Legal Basis: What the IRS Actually Says

The IRS authorizes four metals for inclusion in self-directed precious metals IRAs under Internal Revenue Code Section 408(m). Those four metals are gold, silver, platinum, and palladium. Each metal must meet minimum purity requirements:

• Gold: 99.5% pure (0.995 fineness)
• Silver: 99.9% pure (0.999 fineness)
• Platinum: 99.95% pure (0.9995 fineness)
• Palladium: 99.95% pure (0.9995 fineness)

Additionally, coins must be produced by a national government mint and meet the purity standard. Certain foreign coins are also permitted if they meet purity requirements and are not collectible (no numismatic premium-based coins). Bars must be produced by an accredited or certified refiner, assayer, or manufacturer meeting the relevant purity standard.

It is important to note that the IRS rules are about the metal, not about what it is called. The test is whether the specific coin or bar meets the purity threshold and other requirements — not whether it has a famous brand name on it.

IRA-Eligible Platinum Products

American Platinum Eagle

The American Platinum Eagle is the only platinum coin produced by the United States Mint. It was first issued in 1997 and is produced in proof and uncirculated versions. The bullion version is struck at 0.9995 fineness, making it IRA-eligible. It is available in 1 oz, 1/2 oz, 1/4 oz, and 1/10 oz sizes, though the 1 oz version is the most commonly purchased for IRA purposes.

Canadian Platinum Maple Leaf

The Royal Canadian Mint produces the Platinum Maple Leaf at 99.95% purity, making it eligible for IRA inclusion. Canada was one of the first countries to produce a commercially available platinum coin, and the Maple Leaf series has a strong reputation for quality and liquidity.

Australian Platinum Koala

The Perth Mint of Australia produces platinum Koala coins at 99.95% purity. These are IRA-eligible and are well-regarded internationally.

Platinum Bars

Platinum bars from PAMP Suisse, Valcambi, and other accredited refiners at 99.95% purity are eligible for IRA inclusion. Bars typically carry lower premiums over spot price than coins, making them a cost-effective choice for investors primarily interested in metal exposure rather than numismatic aesthetics.

IRA-Eligible Palladium Products

American Palladium Eagle

The American Palladium Eagle was introduced by the U.S. Mint in 2017, making it the most recently established precious metals bullion coin from the Mint. It is struck at 0.9995 fineness (99.95% pure palladium) and is available in 1 oz size. It is the flagship IRA-eligible palladium coin for U.S. investors.

Canadian Palladium Maple Leaf

The Royal Canadian Mint produced Palladium Maple Leaf coins from 2005 to 2007. These coins are struck at 99.95% purity and are IRA-eligible. They are less commonly available than gold or silver Maple Leafs given the limited production run, but they do circulate in the secondary market.

Palladium Bars

Palladium bars from accredited refiners at 99.95% purity are eligible. Because palladium is less commonly traded in physical form than gold or silver, buyers should work with established dealers and verify the provenance and certification of any bars purchased.

How a Precious Metals IRA Works

A precious metals IRA that holds physical platinum or palladium must be a self-directed IRA. Standard IRAs at brokerages like Fidelity or Schwab hold paper assets (stocks, bonds, mutual funds) and do not allow physical precious metals. To hold physical metals, you need a self-directed IRA with a specialized custodian and an approved depository.

Step 1: Choose a Custodian

IRS rules require that a self-directed IRA holding physical precious metals be administered by an IRS-approved custodian. The custodian handles account administration, reporting, and compliance. Several companies specialize in self-directed precious metals IRAs. When evaluating custodians, compare their annual fees, transaction fees, and storage fees, as these vary significantly.

Step 2: Fund the Account

You can fund a precious metals IRA through a direct contribution (subject to annual IRS contribution limits), a rollover from an existing IRA or 401(k), or a transfer from another IRA. Rollovers and transfers are the most common funding method for investors converting an existing retirement account to include physical metals. The process typically takes 2 to 4 weeks depending on the institutions involved.

Step 3: Purchase the Metal

Once your account is funded, you direct the custodian to purchase your chosen IRA-eligible metals from an approved dealer. The custodian handles the transaction logistics. The metal is purchased in the name of the IRA, not in your personal name.

Step 4: Approved Depository Storage

This is a critical and often misunderstood point. IRS rules require that physical precious metals held in a self-directed IRA be stored at an IRS-approved third-party depository. You cannot take personal possession of the metals while they are in the IRA — doing so would be treated as a distribution, triggering taxes and potential penalties. Approved depositories include Brink’s, Delaware Depository, International Depository Services, and several others. Most custodians have established relationships with specific depositories.

Costs to Understand

A precious metals IRA involves costs that a standard brokerage IRA does not. These typically include:

• Custodian setup fee: A one-time fee for establishing the account, typically $50 to $150.
• Annual custodian fee: An ongoing account maintenance fee, which varies by custodian and account value. Common structures include flat annual fees ($100 to $300) or asset-based fees (a percentage of account value).
• Storage fees: Paid to the depository for physically storing your metals. Typically $100 to $300 per year, depending on the depository and whether segregated or non-segregated storage is selected.
• Dealer premiums: The difference between the spot price of the metal and the price you pay for the coin or bar. Premiums vary by product and market conditions.
• Transaction fees: Some custodians charge a fee per purchase or sale transaction.

These costs mean a precious metals IRA is most cost-efficient with a larger account balance. For smaller accounts, fees can represent a meaningful percentage of assets. Investors should model total annual costs before deciding whether a precious metals IRA makes sense for their situation.

Tax Treatment: Same as Traditional or Roth IRA

A self-directed precious metals IRA follows the same tax rules as any other IRA of the same type. A traditional self-directed IRA provides a potential tax deduction on contributions (subject to income and other limits) and tax-deferred growth, with taxes paid on distributions in retirement. A Roth self-directed IRA is funded with after-tax dollars, grows tax-free, and qualified distributions are tax-free in retirement.

Required minimum distributions (RMDs) apply to traditional self-directed IRAs beginning at age 73 (under current law). If your RMD requires distributing metal rather than cash, you can either sell the metal within the account and distribute cash, or take an in-kind distribution of physical metal (which is then a taxable distribution at the fair market value of the metal).

Is a Platinum or Palladium IRA Right for You?

A precious metals IRA that includes platinum or palladium makes the most sense for investors who have a conviction on the long-term outlook for these metals and want to hold them in a tax-advantaged structure. For investors who already have a gold-focused precious metals IRA, adding platinum or palladium positions can provide exposure to the industrial demand dynamics of the PGM sector alongside gold’s more monetary-oriented characteristics.

Before proceeding, consult with a tax professional or financial advisor to evaluate how a precious metals IRA fits within your overall retirement planning strategy. The right allocation to precious metals — and to platinum and palladium specifically — depends on your time horizon, risk tolerance, existing portfolio, and tax situation.