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Can I Purchase Krugerrands with a Self Directed IRA?

The Internal Revenue Code does not describe what a Self Directed IRA can invest in, only what it cannot invest in.

The IRS only describes the type of investments that are prohibited, which are very few.

Internal Revenue Code Sections 408 & 4975 prohibits “Disqualified Persons” from engaging in certain type of transactions. The purpose of these rules is to encourage the use of IRAs for accumulation of retirement savings and to prohibit those in control of IRAs from taking advantage of the tax benefits for their personal account.

In general, a Self-Directed IRA cannot Invest in life insurance contracts or collectibles defined below:

  • Any work of art
  • Any metal or gem
  • Any alcoholic beverage
  • Any rug or antique
  • Any stamp
  • Most coins

The IRS does permit a Self-Directed IRA to own certain gold coins (American Gold Eagle coins or coins at least .995 fine (99.5% pure)), one ounce silver coins minted by the Treasury Department, any coin issued under the laws of any state, a platinum coin described in 31 USCS 5112(k); and gold, silver, platinum or palladium bullion of a certain fineness that is in the physical possession of a financial institution.

In order for coins to be held inside an IRA, coins must be satisfy a certain level of pureness in their mineral content so that they are not viewed as a type of collector’s coin. As a result, Krugerrands and the old Double Eagle gold coins are disallowed because they do not meet this standard.

To learn more about the rules surrounding purchasing coins with a self directed IRA, please contact an IRA Expert at 800-472-0646 or visit

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