Summary: To take Required Minimum Distributions (RMDs) from a Gold IRA, you can either sell a portion of your metals for cash or request an in-kind distribution. With a cash distribution, the metals are liquidated and the funds are sent to you. With in-kind, you receive physical metals equal to the required value, which is then taxed as income.
How to Take RMDs From a Gold IRA Account: A Complete Guide
When you reach age 73 (or 75 starting in 2033), the IRS says you must start taking money out of your retirement accounts. These withdrawals are called Required Minimum Distributions, or RMDs. Taking these distributions from a regular IRA is pretty straightforward, but gold IRAs work differently. You need to know the special rules that apply when your retirement account holds physical gold instead of stocks or bonds.
Many retirees feel confused about how to handle required withdrawals from their precious metals accounts. This guide breaks down exactly how to take RMDs from a gold IRA account in simple, easy-to-follow steps.
Understanding RMD Basics for Gold IRAs
Before diving into the process, let’s cover some important facts about gold IRA RMDs:
- RMDs start at age 73 for those born between 1951-1959
- They start at age 75 for those born in 1960 or later
- You must take your first RMD by April 1 of the year after you turn 73 (or 75)
- After that, you must take RMDs by December 31 each year
- The penalty for missing an RMD is 25% of the amount you should have withdrawn
- Roth Gold IRAs do NOT require RMDs during the original owner’s lifetime
Three Ways to Take Required Distributions From Your Gold IRA
Unlike regular IRAs, gold IRAs give you multiple options for taking your RMDs. Each method has different advantages and considerations.
1. Sell Gold and Take Cash Distribution
The most common approach is that you sell a portion of your gold IRA and take a cash distribution..
How it works:
- You sell enough gold to meet your RMD amount
- The cash proceeds are sent to you
- Standard income tax applies to the distribution
Advantages:
- Simplest method
- No need to handle physical gold
- Easy to calculate exact amounts
- Can deposit directly to your bank account
Considerations:
- Timing matters – gold prices fluctuate
- May need to sell partial coins or bars
- Transaction fees for selling the metals
2. Take Physical Gold as Your Distribution
Yes, you can actually take your RMD in physical gold coins or bars!
How it works:
- You request specific metals as your distribution
- Your gold and silver custodian arranges delivery from the depository
- You receive physical gold worth your RMD amount
Advantages:
- Keep your investment in gold
- No need to sell during market downturns
- Can add to your personal gold collection
Considerations:
- Shipping and insurance costs
- Need secure storage at home
- May receive slightly more or less than exact RMD amount
- Still taxed on the value of metals received
3. In-Kind Transfer to a Non-IRA Account
This option lets you move gold to a personal storage account without taking physical possession.
How it works:
- Your custodian transfers ownership of specific metals
- Metals move to a non-IRA storage account in your name
- They remain in the same depository, just under different ownership
Advantages:
- No shipping costs or security concerns
- Metals stay professionally stored
- No need to sell during market downturns
Considerations:
- Still pay income tax on the value transferred
- Continue paying storage fees on the metals
- May need to open a personal storage account
Step-by-Step Process for Taking Gold IRA RMDs
Step 1: Calculate Your Required Distribution Amount
Your RMD amount depends on two factors:
- The total value of your gold IRA on December 31 of the previous year
- Your life expectancy factor from IRS tables
| Age | Life Expectancy Factor |
| 73 | 26.5 |
| 75 | 24.6 |
| 80 | 20.2 |
| 85 | 16.0 |
| 90 | 12.2 |
Example calculation:
If your gold IRA was worth $100,000 on December 31 last year, and you’re 75, your RMD would be:
$100,000 ÷ 24.6 = $4,065
Step 2: Contact Your Gold IRA Custodian
Call your custodian at least 30 days before you need your distribution. They’ll guide you through their specific process and forms. Ask about:
- Their deadline for processing RMDs
- Any fees for different distribution methods
- Documentation they require
Step 3: Choose Which Metals to Distribute
If selling for cash, decide which coins or bars to liquidate. Consider:
- Current premiums on different products
- Ease of selling (American Eagles sell faster than obscure bars)
- Keeping full coins/bars when possible
If taking physical metals, specify exactly which items you want.
Step 4: Complete Distribution Forms
Your custodian will provide forms that require:
- Your personal information
- Distribution amount
- Method of distribution
- Tax withholding preferences
- Delivery instructions (if applicable)
Step 5: Arrange for Tax Withholding (Optional)
You can have taxes withheld from your distribution or pay them later. Options include:
- No withholding (you’ll pay taxes when filing)
- Standard 10% federal withholding
- Custom withholding percentage
- State tax withholding where applicable
Step 6: Receive and Verify Your Distribution
Whether receiving cash or physical metals:
- Confirm the amount matches your RMD requirement
- Keep all documentation for tax purposes
- Report the distribution on your tax return
Special Considerations for Gold IRA RMDs
Timing Your Distribution
Gold prices change daily. If taking cash distributions, consider:
- Historical price patterns (gold often rises in early January and late August)
- Current market trends
- Your tax situation
Partial Coin Solutions
What if your RMD doesn’t equal exact coin values? Options include:
- Taking slightly more than required (simplest option)
- Selling a portion of a larger bar
- Combining with cash from another source
Multiple IRAs and Aggregation
If you have several retirement accounts:
- You must calculate RMDs separately for each IRA
- You can take the total amount from any combination of your IRAs
- Gold IRAs can be aggregated with traditional IRAs
- 401(k)s and other employer plans must take separate RMDs
Common Mistakes to Avoid
• Missing the deadline – Set calendar reminders for December 1
• Incorrect valuation – Use the previous year-end value, not current value
• Forgetting transaction time – Start the process early (November is ideal)
• Ignoring tax implications – Plan for the tax bill
• Not keeping records – Save all distribution documentation
Taking required distributions from your precious metals retirement account requires careful planning. By understanding your options and following the proper steps, you can meet IRS requirements while making smart decisions about your gold investments. Whether you choose to sell for cash, take physical metals, or use in-kind transfers, knowing how to take RMDs from a gold IRA account ensures you stay compliant while preserving the benefits of your precious metals investment strategy.