Gold IRA Custodians And Depositories
Short answer. The custodian administers your IRA, the depository stores the metals, and the dealer sells them. They're usually three separate parties.
Who Does What
| Role | Job |
|---|---|
| Custodian | Holds and administers the IRA, handles reporting and transfers |
| Dealer | Sells you the metals |
| Depository | Physically stores the metals on behalf of the IRA |
Storage Types
- Segregated: your metals are stored separately and identifiable as yours. Usually costs more.
- Commingled (non-segregated): pooled with others' metals of the same type; you receive equivalent items back.
What To Ask
- Which custodian and depository do you use, and can I choose?
- Is storage segregated or commingled, and what does each cost?
- What insurance covers the stored metals?
- How do I get statements and verify holdings?
Some dealers, including Augusta according to reviews, are dealers and not custodians. See how an Augusta gold IRA works.
What A Custodian Actually Does
A custodian is a financial institution approved to hold retirement accounts. For a self-directed IRA, it keeps the account records, processes purchases and sales that you direct, handles tax reporting, and processes transfers and distributions. A custodian generally does not give investment advice and does not vet what you buy. That is why you do your own checking.
Questions To Ask A Custodian
- What are the setup, annual, and transaction fees?
- Which depositories do you work with, and can I choose?
- How do you confirm that metals are eligible before a purchase?
- How are statements delivered, and how are holdings valued?
- What is the process and fee for transferring out?
Depositories And Insurance
A depository is a secured facility that stores metals for IRAs. Ask which one holds your metals, what insurance covers them, who carries that coverage, and how often holdings are audited. Look up the depository independently rather than relying on a dealer's description.
Fee Structures
| Style | How it works | Watch for |
|---|---|---|
| Flat fee | The same amount each year | Weighs more on small balances |
| Percentage fee | A share of your account value | Grows as your account grows |
| Tiered or bundled | A set amount that covers several services | Which services are really included |
Switching Custodians
You can move an IRA from one custodian to another by a trustee-to-trustee transfer. Ask whether metals move in kind or must be sold, since selling and rebuying can cost you the spread twice.
Documents You Should Receive
- A fee schedule from the custodian.
- An account agreement that names the custodian and the depository.
- Purchase confirmations showing the products, quantities, and prices.
- Regular account statements.
Red Flags In The Relationship
- A dealer that will not name the custodian.
- A custodian that cannot explain its fees.
- Statements that do not match your confirmations.
Ready To Compare Companies?
Use our checklist to get written quotes, then see how gold IRA companies compare. If you have $50,000 or more, our Augusta review covers the strengths and drawbacks.
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Frequently Asked Questions
Can I Choose My Own Custodian?
Often yes, but some dealers steer you to partners. Ask.
Does My Dealer Have To Be My Custodian?
No. In most cases they are separate companies, though some dealers work closely with particular custodians. Ask whether you can choose.