Platinum can be held inside a Self‑Directed IRA if the coins or bars meet IRS purity and product rules, the metals are purchased through an approved custodian, and they are stored in an IRS‑approved depository rather than in your possession[5][1].
Essential context and rules
– What a “Platinum IRA” actually is: There is no separate IRA type called a “Platinum IRA.” The correct vehicle is a Self‑Directed IRA (or a precious‑metals IRA within a Self‑Directed IRA or certain Solo 401(k) plans) that permits holding eligible physical platinum as an IRA investment[5][2].
– Eligible platinum products and purity: The IRS permits platinum bullion and certain government‑minted coins that meet strict purity standards and product specifications; platinum and palladium typically must meet very high purity thresholds (sources list platinum/palladium purity requirements alongside other metals) and only specified coins and bars are allowed[1][5][4].
– How to acquire platinum for an IRA: You must buy the platinum through your IRA custodian or a dealer approved by the custodian; you cannot simply transfer platinum you already own into an IRA without following IRS procedures and custodian rules[4][5].
– Custodian and storage requirements: IRS rules require a qualified IRA custodian or trustee to hold title to IRA assets and the physical metal must be held by an approved, insured depository—storage in your home, a personal safe, or a bank safe deposit box is not allowed[2][4].
– Funding the IRA holding platinum: Precious metals can be acquired inside the IRA by using new contributions (subject to the annual IRA limits), trustee‑to‑trustee rollovers or transfers from another retirement plan, or by directing the custodian to use IRA cash to buy approved platinum products[6][1].
– Taxes and distributions: Platinum held in a Traditional IRA is tax‑deferred and distributions are taxed as ordinary income when taken; if held in a Roth IRA, qualified distributions may be tax‑free[3][2]. Withdrawals of physical metal typically require the custodian to liquidate the metal to cash unless the distribution rules for in‑kind distributions are followed and allowable[3][5].
– Required Minimum Distributions (RMDs): Traditional IRAs that hold precious metals are still subject to RMD rules; you must plan to take required distributions when they begin, which can require selling metal to satisfy the distribution in cash if you do not want to accept in‑kind metal distributions[1].
– Prohibited items and numismatic limits: Collectibles, rare coins, graded or numismatic coins, and items marketed as limited edition or collectible are generally disallowed in an IRA; allowed items are investment‑grade bullion and specific government coins that meet the IRS standards[5][4].
– Fees and costs to expect: Precious‑metal IRAs usually involve setup fees, annual custodian fees, storage/depository fees, insurance costs, and dealer markups on metal purchases; these costs can be higher than conventional IRAs and reduce net returns[2][6].
– Contribution limits and alternatives: Annual contribution limits for Traditional and Roth IRAs apply to precious metals IRAs (the same dollar limits apply to the IRA account regardless of asset type), and business owners can consider Solo 401(k) structures for higher contribution capacity and different rules[1][5][8].
– Diversification and allocation considerations: Financial advisors and industry guides commonly recommend limiting precious metals to a modest portion of a retirement portfolio (many suggest single‑digit to low‑teens percent allocations), but the right allocation depends on personal goals, risk tolerance, and time horizon[6][2].
Practical steps to set up platinum in an IRA
1. Choose a self‑directed IRA custodian that permits precious metals investments and supports platinum products meeting IRS rules[5][2].
2. Open the IRA account and fund it via new contributions, a trustee‑to‑trustee transfer, or a rollover from another qualified plan[6][1].
3. Select approved platinum coins or bullion that meet IRS purity and product specifications and confirm the custodian and dealer accept that product[5][4].
4. Direct the custodian to purchase the metal through an approved dealer and arrange for the metal to be delivered to an IRS‑approved depository for storage[4][2].
5. Monitor fees, maintain required paperwork, and plan for taxes and RMDs when applicable[2][3].
Limitations, risks, and common pitfalls
– Noncompliance risk: Holding prohibited items, personally possessing IRA metals, or failing to use an approved custodian or depository can trigger severe tax penalties and be treated as a distribution[4][2].
– Liquidity and income: Physical platinum does not pay dividends or interest; it must be sold to realize cash, which can be less liquid and have transaction costs compared with securities[2][1].
– Premiums and storage costs: Dealer markups, storage fees, and insurance can materially reduce investment returns, especially for small accounts[2][6].
– Valuation and taxation: When distributions occur, the fair market value is used for tax purposes and distributions from Traditional IRAs are taxed as ordinary income[3][5].
Sources
https://moneymade.io/learn/articles/precious-metals-iras-guide/
https://www.morningstar.com/news/accesswire/1116241msn/gold-ira-pros-and-cons-a-complete-2025-guide-for-retirement-investors-released
https://www.birchgold.com/blog/precious-metals/precious-metals-tax-guide/
https://www.usmoneyreserve.com/news/gold/gold-ira-rules/
https://www.irafinancial.com/blog/holding-gold-in-an-ira-or-401k/
https://www.openpr.com/news/4308576/precious-metal-ir