Every IRA — whether it holds stocks, bonds, or physical gold — requires a custodian. For precious metals IRAs, you need a self-directed IRA custodian that permits alternative investments.
The Custodian\'s Role
- Account administration — opens your IRA, processes contributions and rollovers, maintains records
- IRS compliance — ensures your account meets all federal requirements, files required reports
- Transaction facilitation — directs payments to dealers, coordinates metal shipments to depositories
- Reporting — provides annual account statements, 1099 forms, and fair market value reports
- Distribution processing — handles required minimum distributions and withdrawal requests
Custodian vs Dealer
The custodian and the dealer serve different roles:
| Role | Custodian | Dealer |
|---|---|---|
| **Function** | Administers the IRA account | Sells the precious metals |
| **Regulation** | Federal and state financial regulators | Industry self-regulation |
| **Handles money** | Yes — holds account funds | Receives payment from custodian |
| **Selects metals** | No — that is your choice | Provides product guidance |
| **Stores metals** | No — coordinates with depository | Ships to depository |
What to Look For
- Experience with precious metals — not all self-directed custodians handle metals efficiently
- Fee transparency — understand annual fees, setup fees, storage fees, and transaction fees upfront
- Established reputation — look for custodians with years of track record and clean regulatory history
- Responsive service — the custodian is your administrative partner for the life of the account