Palladium IRA: Rules and Eligible Products

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What a palladium IRA is under federal law

A palladium IRA is not a special product sold by a bank. It is a self-directed IRA that holds physical palladium bullion in place of stocks, bonds, or mutual funds. The account wrapper sits under IRC Section 408, the same section that governs any traditional or Roth IRA.

The rule that lets palladium enter the account is IRC Section 408(m)(3). Collectibles are prohibited inside an IRA under 408(m)(2), but a purity carve-out exempts certain bullion coins and bars. For palladium, the floor is 99.95 percent pure.

Two structural rules also apply. A self-directed IRA custodian must own the metal on your behalf; that entity must be a bank or an IRS-approved non-bank trustee. And the physical palladium must sit at an IRS-approved depository, never at your home. Home storage triggered a full taxable distribution in the 2021 US Tax Court decision McNulty v. Commissioner.

Federal contribution limits and required minimum distribution rules apply identically to a palladium IRA. For 2026, the combined limit is 7,500 dollars per person, plus a 1,100 dollar catch-up at age 50 or older, per IRS Publication 590-A. RMDs begin at age 73 for those born from 1951 to 1959, and at age 75 for those born from 1960 onward under SECURE 2.0.

The bullion route: why palladium has no statutory coin

IRC Section 408(m)(3) has two lanes. Subparagraph (A) names specific coins by statute, and subparagraph (B) admits bullion by fineness. Palladium is the only IRA metal that has no statutory coin at all.

Gold uses both lanes. The American Gold Eagle qualifies under 408(m)(3)(A)(i) through 31 USC 5112, even though the Eagle is 22-karat at 91.67 percent purity, below the 99.5 percent bullion floor. Silver uses both lanes too. The American Silver Eagle qualifies as a named silver coin under 408(m)(3)(A)(ii). Platinum has a statutory reference at 408(m)(3)(A)(iii), which admits the American Platinum Eagle at 99.95 percent.

Palladium was not written into the statute. Every IRA-eligible palladium coin, including the American Palladium Eagle, qualifies through 408(m)(3)(B), the bullion route. That route pegs the minimum fineness to the level required for delivery against a regulated futures contract. For palladium, the NYMEX and COMEX contract-grade floor is 99.95 percent, and this is the number your custodian will check on every purchase.

The practical effect is a single, uniform bullion rule for palladium: any coin or bar at 99.95 percent purity or higher, from a recognized issuer, is eligible. Any coin or bar below 99.95 percent is not, no matter its brand, condition, or grade.

Which palladium coins are IRA-eligible

The federal rule is uniform across all fifty states. Texas adds no state layer to palladium eligibility. A coin either clears the 99.95 percent fineness floor from a recognized issuer, or it stays out of the account.

The American Palladium Eagle is the flagship US palladium coin for IRAs. The US Mint has struck it in 99.95 percent purity every year since 2017. Public Law 111-303, the American Eagle Palladium Bullion Coin Act of 2010, authorized the program under President Barack Obama. The obverse uses Adolph A. Weinman’s Winged Liberty design from the 1916 Mercury dime.

The proof American Palladium Eagle is also eligible when kept in the original US Mint packaging with the certificate of authenticity. The Canadian Palladium Maple Leaf, struck by the Royal Canadian Mint at 99.95 percent, is the other coin most custodians accept as a standard menu item. The chart below places these products against the 99.95 percent line.

The Perth Mint has issued palladium coins in prior years, including limited runs of the Emu design. Availability shifts year to year, so confirm current stock with your custodian and dealer before ordering. A palladium coin from a lesser-known private mint may not clear a custodian’s buy list even if the fineness stamp reads 99.95 percent.

Palladium bars: fineness and refiner accreditation

Palladium bars enter the account through the same 99.95 percent floor, plus one accreditation check. The bar must come from a refiner or assayer that is COMEX or NYMEX-approved, LBMA-accredited under the Good Delivery Rules, or a recognized national mint. The stamp on the bar must show the refiner, the weight, and the fineness.

Common IRA-eligible palladium bar sizes are 1 gram, 5 gram, 10 gram, 1 troy ounce, 10 troy ounce, and 1 kilogram. Most Texas retirees choose 1 troy ounce or 10 troy ounce bars for a balance of divisibility and lower per-unit assay overhead. Kilobars are rare on custodian buy lists because storage tiers step up at that weight.

Any palladium bar sold as investment grade is not automatically IRA-eligible. Before buying, verify the refiner is on the LBMA Good Delivery List or on the CME accepted brands list. Ask the dealer for a scan of the assay card or the mint certificate. If either is missing, the custodian may refuse the transaction on receipt at the depository.

The Texas layer: no state income tax

Article 8, Section 24 of the Texas Constitution prohibits a state personal income tax. Voters strengthened this rule in 2019 by passing Proposition 4, which set a two-thirds legislative supermajority to repeal it. For a palladium IRA, the constitutional rule changes how three federal events land at year end.

Required minimum distributions

A required minimum distribution from a traditional palladium IRA is taxed at your federal ordinary income rate for the year. In a state such as New York with high graduated brackets, the same RMD stacks a full state income tax layer on top of the federal amount. In Texas, that state layer is zero, so the federal figure is the total tax owed.

Roth conversions

Converting palladium held in a traditional IRA into a Roth IRA is a taxable federal event in the conversion year. Texas adds no state tax on top of the federal bill. Retirees who plan a multi-year conversion ladder often price the Texas residency against a former high-tax state for this exact reason.

Early withdrawals before age 59 and a half

An early withdrawal from a traditional palladium IRA before age 59 and a half generally triggers a 10 percent federal penalty on top of ordinary federal income tax. Texas adds nothing to the penalty side. Federal exceptions still apply, including first home up to 10,000 dollars, qualified higher education, disability, and substantially equal periodic payments under IRC 72(t).

Sales tax on personal palladium purchases

Texas exempts most precious metals purchases from state sales tax at the point of retail sale, per the Texas Tax Code Section 151.336. That exemption matters for personal cash purchases held outside a retirement account. It does not apply to the IRA transaction itself, which the custodian runs and ships straight to the depository. Useful Texas context, not a palladium IRA rule.

Storage: Texas Bullion Depository and private depositories

Every palladium IRA needs storage at an IRS-approved facility. Home storage is not allowed. The 2021 US Tax Court decision in McNulty v. Commissioner treated home-stored IRA metal as a full taxable distribution, and hit the account owner with the 10 percent early-withdrawal penalty on top. A Texas resident has several storage lanes; one is unique to the state.

Texas Bullion Depository through Lone Star Tangible Assets

The Texas Bullion Depository is an agency of the State of Texas, created by House Bill 483 of the 84th Legislature and signed by Governor Greg Abbott on June 12, 2015. Operations began in 2017 at a purpose-built campus in Leander, north of Austin, on roughly ten acres.

The depository holds IRA metal through its operator Lone Star Tangible Assets LP. The IRS requires IRA property to sit with a bank or an IRS-approved non-bank trustee, and Lone Star Tangible Assets received IRS non-bank trustee approval in 2023. That approval opened the state depository to IRA palladium, alongside gold, silver, and platinum.

Storage at the state depository is segregated by default, meaning the exact bars and coins deposited are the same units returned on distribution. Assets are insured through Lloyd’s of London against theft, fire, flood, and natural disaster, with daily market value updates. The vault carries a high security rating and uses biometric access with on-site security personnel, per the depository’s IRA Storage Services page.

Equity Trust Company was the first self-directed IRA custodian to work with the state depository under the non-bank trustee framework. A Texas resident who wants state-run storage typically opens the self-directed IRA at Equity Trust, chooses a dealer that partners with Equity Trust, and coordinates delivery to Leander. Ask for the written fee schedule among the custodian, the dealer, and the depository contractor before signing.

Private IRS-approved depositories

Palladium IRA metal can also sit at private IRS-approved depositories outside Texas. Delaware Depository in Wilmington and International Depository Services in New Castle both accept IRA palladium. In-state private options include the Texas Precious Metals Depository in Shiner, southeast of San Antonio, which offers segregated storage with third-party audits.

The choice between the state depository and a private one is philosophical as much as practical. The Texas Bullion Depository is state-audited and state-run through a private operator. A private depository is federally regulated and third-party audited. Both are IRS-approved when the paperwork is set up correctly.

Worked example: a 62-year-old Austin retiree

How to open a palladium IRA in Texas

The five steps below apply to any Texas resident opening a palladium IRA. They match the process a custodian and a dealer will actually run. Confirm the current details with each party in writing before you fund the account.

1. Choose a self-directed IRA custodian. The custodian must be a bank or an IRS-approved non-bank trustee. For state-run storage at the Texas Bullion Depository, Equity Trust Company was the first custodian to work with the depository under the non-bank trustee framework.
2. Fund the account. Options are a direct trustee-to-trustee transfer from another IRA, a direct rollover from a 401(k) or similar employer plan, or a new contribution up to the 2026 limit of 7,500 dollars plus 1,100 dollars catch-up at age 50 or older.
3. Choose IRA-eligible palladium products with your dealer. Common picks are American Palladium Eagles, Canadian Palladium Maple Leafs at 99.95 percent, and generic 1 or 10 troy ounce bars from an LBMA-accredited or COMEX-approved refiner. Ask for the spot reference and the total invoice on every order.
4. Confirm the paperwork before purchase. The custodian needs product identification, the fineness stamp, and the refiner or mint name for each item. A coin or bar that fails any of these checks can be refused on receipt at the depository.
5. Ship the metal to an IRS-approved depository. For a Texas resident who wants in-state state-run storage, the destination is the Texas Bullion Depository in Leander through Lone Star Tangible Assets. Private IRS-approved depositories in Delaware, Utah, and Texas are alternatives.

Estimate the fee drag on a Texas palladium IRA

Palladium trades in a thinner market than gold or silver and often carries wider dealer bid-ask spreads. Storage schedules also vary widely by depository tier. Run the calculator once for your palladium position using the written schedule you received from your custodian and depository.

When a palladium IRA is a bad idea in Texas

Frequently asked questions

By the Harry’s Coins Editorial team. Last reviewed June 2026.