IRA Approved Gold: Why the Eagle Qualifies at 91.67% and the Krugerrand Does Not
Short answer. Gold gets into an IRA by two separate routes, and almost every page on this subject describes only one of them. Route one: the four American Gold Eagle denominations are named in the statute. Route two: any gold bullion of at least .995 fineness from an accredited producer or a national government mint.
That distinction is not academic. The Gold Eagle is only 91.67% pure, so it fails route two outright. It qualifies solely because Congress wrote it in. The South African Krugerrand has the identical purity, is not named, and therefore does not qualify at all.
Check a specific product
Pick what you hold or are considering. You get the verdict, which of the two routes applies, and the exact provision.
Two routes, and why that matters
Section 408(m)(1) treats buying a collectible inside an IRA as an immediate taxable distribution, and § 408(m)(2) defines "collectible" to include any metal or gem and any stamp or coin. So the starting position is that gold is prohibited. Everything permitted is an exception carved out of that.
There are exactly two exceptions and they work completely differently.
Route one: named coins, purity irrelevant
"(i) a gold coin described in paragraph (7), (8), (9), or (10) of section 5112(a) of title 31" 26 U.S.C. § 408(m)(3)(A)(i)
Those four paragraphs of Title 31 describe, by diameter and weight, the fifty dollar, twenty-five dollar, ten dollar and five dollar gold coins containing one, one-half, one-quarter and one-tenth troy ounce of fine gold. In other words, the four American Gold Eagle sizes.
Notice what this route does not mention: purity. The statute names these coins and that is the end of the analysis. Fineness never enters into it.
Route two: bullion, purity is everything
"any gold, silver, platinum, or palladium bullion of a fineness equal to or exceeding the minimum fineness that a contract market ... requires for metals which may be delivered in satisfaction of a regulated futures contract, if such bullion is in the physical possession of a trustee described under subsection (a)." 26 U.S.C. § 408(m)(3)(B)
Here purity is the whole test, and the threshold is not a number Congress chose. It defers to whatever the futures exchange requires for delivery, which for gold is .995. That is where the familiar figure comes from, and it is why you will not find ".995" anywhere in the tax code.
The Eagle paradox, in one line
The American Gold Eagle is .9167 fine. That is below the .995 bullion threshold, so under route two it would be rejected. It is eligible only because route one names it. Meanwhile the American Gold Buffalo is .9999 fine but is authorised under a different subsection of Title 31 that the tax code does not list, so it qualifies under route two rather than route one. Two American coins, both eligible, arriving there by opposite legal paths.
What qualifies
| Product | Fineness | Eligible | Which route |
|---|---|---|---|
| American Gold Eagle | .9167 | Yes | Named coin, § 408(m)(3)(A)(i) |
| American Gold Buffalo | .9999 | Yes | Bullion, § 408(m)(3)(B) |
| Canadian Gold Maple Leaf | .9999 | Yes | Bullion, government mint |
| Austrian Gold Philharmonic | .9999 | Yes | Bullion, government mint |
| Australian Gold Kangaroo | .9999 | Yes | Bullion, government mint |
| Gold Britannia, 2013 onward | .9999 | Yes | Bullion, see traps below |
| Gold bars, accredited refiner | .995+ | Yes | Bullion, § 408(m)(3)(B) |
| Coin issued under State law | any | Yes | § 408(m)(3)(A)(iv), no purity test |
| Proof Gold Eagle | .9167 | Depends | Named coin, but custodian decides |
| Generic gold rounds | .9999 | Depends | Turns on producer accreditation |
| South African Krugerrand | .9167 | No | Fails both routes |
| Gold Britannia, 2012 or earlier | .9167 | No | Below threshold, not named |
| Pre-1933 US gold coins | .900 | No | Below threshold, numismatic |
| Mexican 50 Peso | .900 | No | Below threshold |
| Gold jewellery or scrap | varies | No | Not bullion, not a named coin |
| Graded and slabbed coins | varies | No | Grading premium is collectible value |
Four traps
Trap The Krugerrand, and why purity alone tells you nothing
The Krugerrand is one of the most recognised gold coins in the world and it is .9167 fine, exactly the same as the American Gold Eagle. Yet the Eagle is eligible and the Krugerrand is not. The reason is purely legal: the Eagle is named in the statute and the Krugerrand is not, and .9167 sits below the .995 bullion floor. If you take one thing from this page, take this: asking "how pure is it" is not enough. You also have to ask "is it named".
Trap The Britannia year cliff
The Royal Mint raised the Gold Britannia from .9167 to .9999 in 2013. Coins dated 2013 onward qualify. Everything from 1987 to 2012 does not. Same coin, same name, same shelf, and the date decides it. The Silver Britannia changed in the same year, so if you are buying either one, check the date before anything else.
Trap Pre-1933 US gold is the wrong kind of famous
Double Eagles, Liberty Heads and Saint-Gaudens pieces are historically significant, sometimes beautiful, and firmly ineligible. They are .900 fine, below the threshold, and they carry exactly the numismatic premium that § 408(m) exists to keep out of retirement accounts. If a salesperson steers you toward pre-1933 gold "for your IRA", that is a conversation to end.
Trap Grading turns eligible into ineligible
A raw Gold Eagle qualifies. Send it to PCGS or NGC and get it back in a slab with a grade, and the premium you have created is collectible value. That is the thing the rule excludes. Certification adds nothing for IRA purposes and can cost you the eligibility.
What it costs to get this wrong
Under § 408(m)(1) a non-qualifying purchase inside an IRA is treated as a distribution to you of that amount, in that year. It becomes ordinary income, and if you are under 59½ an additional 10% early distribution tax generally applies on top. In McNulty v. Commissioner (2021) the Tax Court also sustained accuracy-related penalties.
So a better price on a Krugerrand is not a better deal. It is a taxable distribution with a discount.
Getting it into the account
Eligible gold you buy and take home cannot be moved into your IRA afterwards. The account has to make the purchase through a custodian, and the metal has to go straight to an approved depository. The mechanics, including the 20% withholding trap on employer plans, are on our transfers and rollovers page, and the custodian verification step is on the custodians page.
Questions people ask
Is the American Gold Eagle IRA eligible even at 22 karat?
Yes, and it is the clearest example of why the two routes matter. At .9167 it fails the purity test. It qualifies because § 408(m)(3)(A)(i) names it through 31 U.S.C. § 5112(a)(7) to (10).
Are Krugerrands IRA eligible?
No. Same purity as the Eagle, not named in the statute, and below the .995 bullion floor. It fails both routes.
What is the minimum fineness for IRA gold?
.995 fine, and that number comes from futures delivery standards rather than from the tax code itself. The code defers to what a contract market requires.
Can I hold gold and silver in the same IRA?
Yes, subject to your custodian's accepted-product list. Which silver qualifies is covered on our silver page, and the tests are structurally the same with a .999 threshold instead of .995.
Does the Gold Buffalo count as a named coin?
No, and that surprises people. The Buffalo is authorised under a different subsection of Title 31 than the four paragraphs the tax code lists, so it is not covered by the named-coin route. It qualifies as bullion instead, on its .9999 purity.
Next
- Which silver qualifies, the same two routes with a .999 threshold
- All the rules in one place, including storage and distributions
- Moving an existing account in, and the 20% withholding trap
Primary sources
- 26 U.S.C. § 408(m), the collectibles rule and both exceptions
- 31 U.S.C. § 5112, including subsection (a)(7) to (10) for the Eagles
- McNulty v. Commissioner, 157 T.C. No. 10 (2021)
- US Mint and Royal Mint published specifications
Metals Retirement is an independent research site. We are not a broker, dealer, custodian, law firm or investment adviser, and nothing here is investment, legal or tax advice. Eligibility rules change and custodian policies vary, so verify with your own custodian and tax professional before you buy. We may be compensated by providers we compare, at no cost to you, and that compensation never determines what this page says qualifies. Last reviewed 27 July 2026.