Segregated vs Commingled Storage in a Gold IRA
Short on time? The essentials
- Segregated storage returns the exact original bars or coins; commingled storage returns equivalent bullion of the same product and quantity from a fungible pool.
- Both storage models satisfy IRC section 408(m); IRS Publication 590-A does not prescribe one over the other, and taxes on distributions are identical either way.
- Segregated typically costs 60 to 100 percent more per year than commingled at the same depository, based on published pass-through fees at Delaware Depository via STRATA Trust and Brinks via IRA Express.
- Texas Precious Metals Depository in Shiner is segregated only; the state-run Texas Bullion Depository in Leander is segregated only for IRA accounts; IDS Group offers segregated and allocated (no unallocated); CNT offers both models.
- Legal category: reputable depositories hold both segregated and commingled metal under a bailment or custody agreement, so client metal is not on the depository's balance sheet in either case.
- Texas has no state personal income tax, so IRA distributions are taxed federally only regardless of the storage model you elect (source: Texas Comptroller of Public Accounts, checked July 2026).
- Storage-model choice does not affect the 10 percent early-withdrawal penalty on distributions before age 59.5 under IRS Publication 590-B.
On this page
- What each term actually means
- Legal ownership under both models
- Which Texas-relevant depositories offer which model
- The fee gap in dollars per year
- How the custodian layer sets your options
- Estimate your own annual fee drag
- How to pick between segregated and commingled
- Worked example: a Dallas 100,000-dollar rollover
- When either model is a bad fit for you
- Frequently asked questions
- Sources
What each term actually means
Segregated storage means your specific bars or coins are held physically separate inside the depository, under your name or your IRA custodian's name for your account. When you take an in-kind distribution or sell, the depository returns the exact serial-numbered bars or the exact coin tubes you purchased. No other client shares that lot.
Commingled storage (also called non-segregated or pooled fungible) means your bullion is stored in a shared vault position with other clients' bullion of the same product. When you sell or distribute, you receive an equivalent quantity of the same product specification, not the specific bar you originally bought. A 10-ounce Credit Suisse bar you deposit comes back as a 10-ounce Credit Suisse bar of matching fineness, from the pool.
A third term sometimes appears on paperwork: allocated. Allocated typically means specific bars are earmarked to your account on the books, even if the physical arrangement is pooled. Unallocated (rare for IRA metal) means you own a share of a pool with no specific bar reserved. IDS Group explicitly rejects unallocated as an IRA storage mode and offers only allocated or segregated.
The practical difference: segregated returns the exact serial number; commingled returns the same product and quantity from a pool; allocated returns specific bars pre-assigned to your account. All three are valid under IRC section 408(m) as long as the vault holder qualifies as a bank, credit union, state-chartered trust company, or IRS-approved non-bank trustee.
Legal ownership under both models
Under both segregated and commingled storage at a reputable depository, your IRA metal sits under a bailment or custody agreement. The metal remains the property of your IRA custodian on behalf of your account. It is not an asset on the depository's balance sheet, so a bankruptcy of the depository does not turn client metal into a general creditor claim.
Delaware Depository, Texas Precious Metals Depository, and the Texas Bullion Depository each state a bailment or custody structure in their public materials (source: delawaredepository.com IRA Services page, texasdepository.com security page, and texasbulliondepository.gov, all checked June or July 2026). The distinction between segregated and commingled does not change this legal category on its own.
What does change: with commingled, the depository must run an accurate ledger of pooled inventory per product. If ledger records fail (fraud, missing bars, uncorrected shortage), an individual commingled client sees a pro-rata loss across the pool. With segregated, the physical position under your name is either present or it is not; there is no ledger arithmetic against a shared pile.
This gap has historically been small at insured US IRA depositories. Lloyds-underwritten all-risk vault policies at Delaware Depository, IDS Group, Texas Precious Metals Depository, and the Texas Bullion Depository cover both segregated and commingled metal at replacement value. The legal edge of segregated is worth its cost mainly for readers who want the exact-serial trace and are comfortable paying a modest annual premium.
Which Texas-relevant depositories offer which model
Not every depository offers both. Two of the three Texas-soil vaults on typical Texas gold IRA paperwork remove the choice at intake: Texas Precious Metals Depository in Shiner is segregated only, and the state-run Texas Bullion Depository in Leander is segregated only for IRA accounts. This is deliberate design for long-hold retirement metal.
| Depository | Segregated | Non-segregated / commingled | Notes |
|---|---|---|---|
| Delaware Depository (Wilmington, DE) | Yes (higher fee) | Yes (pooled fungible) | Both offered; segregated priced separately in the STRATA Trust pass-through. |
| Brinks Global Services USA (Salt Lake City, UT) | Yes (higher fee) | Yes (commingled) | Both offered; IRA Express bills segregated at 20 basis points and commingled at 12 basis points. |
| IDS Group (New Castle, DE and Dallas, TX) | Yes | Not offered | Allocated and segregated only; unallocated explicitly not offered. |
| CNT Depository (Bridgewater, MA) | Yes | Yes (commingled) | Both offered per the Bullion.Directory listing; fees quoted through the custodian. |
| Texas Precious Metals Depository (Shiner, TX) | Only mode | Not offered | Every client is segregated; no pooled option at any balance. |
| Texas Bullion Depository (Leander, TX) | Only mode for IRA | Not offered for IRA | State agency; IRA storage services page confirms segregated-only for IRA holdings. |
Source: storage arrangement and IRA services pages of each depository, checked July 2026. Texas Precious Metals Depository pricing page and Texas Bullion Depository IRA Storage Services page confirm segregated-only for IRA. IDS Insurance page confirms allocated and segregated as the only two modes.
Reading the table: if you want a choice, Delaware Depository, Brinks, and CNT keep both models on the menu. If you want segregated by policy (no way to accidentally end up pooled), the two Texas-soil depositories in Shiner and Leander, along with IDS, remove that risk. IDS is the middle path: allocated is standard, segregated is available, and unallocated is rejected outright.
The fee gap in dollars per year
The chart below plots the depository storage line only, not the custodian account fee or the dealer coin premium. Numbers come from published pass-through fees at STRATA Trust (Delaware Depository) and IRA Express (Brinks), the two setups where the segregated vs commingled dollar delta is transparent.
Two patterns stand out. At Delaware Depository, the flat pass-through does not scale with balance, so the segregated premium stays fixed at 75 dollars per year across every balance shown. At Brinks via IRA Express, the basis-point structure means the segregated premium tracks account size: 75 dollars extra at the minimum floor, 75 dollars extra at 100,000 dollars, and 200 dollars extra at 250,000 dollars.
At the higher-fee-transparency end of the market, Texas Precious Metals Depository publishes a single tiered percent that includes segregated by default. The rate starts at 0.50 percent per year up to 100,000 dollars, drops to 0.45 percent from 100,001 to 500,000 dollars, and steps down to 0.28 percent above 2.5 million dollars, with a 10-dollar monthly floor. A commingled comparison is not offered at TPMD, so no direct gap exists at that vault.
At the state-run Texas Bullion Depository, the retail non-IRA segregated schedule runs 0.49 percent from 0 to 499,999 dollars, 0.44 percent from 500,000 to 999,999 dollars, and lower at higher tiers, effective April 1, 2026. The IRA-specific fee is negotiated per account between the dealer, the custodian, and the depository contractor. A commingled comparison also does not exist here because IRA storage is segregated only.
How the custodian layer sets your options
You do not select segregated or commingled directly with the depository in most cases. Your IRA custodian publishes an approved depository list, and the storage models offered at each depository flow through to your buy instruction. STRATA Trust prices Delaware Depository at 100 dollars per year non-segregated or 175 dollars per year segregated (source: stratatrust.com fee schedule, checked June 2026).
IRA Express prices Brinks at 12 basis points per year commingled with a 125-dollar minimum, or 20 basis points per year segregated with a 200-dollar minimum (source: iraexpress.com IRAxp Precious Metals form, checked July 2026). Out-shipment and handling fees are separate from both lines. The same depository can therefore appear on your paperwork with different fee schedules depending on which custodian you use.
Equity Trust Company, the first self-directed IRA custodian publicly working with the Texas Bullion Depository as of June 2026, negotiates the IRA storage fee per account with the depository contractor. Ask Equity Trust for the current IRA-specific rate before you sign a buy instruction. The public non-IRA schedule at texasbulliondepository.gov is a reference point, not the IRA quote.
GoldStar Trust in Amarillo, STRATA Trust in Waco, Digital Trust in Las Vegas, and Horizon Trust in Albuquerque are the four IRA custodians named on Texas Precious Metals Depository intake. Because TPMD is segregated only, your custodian offers only the segregated tiered rate at Shiner; no commingled election is possible at that vault regardless of which of these four custodians you use.
Estimate your own annual fee drag
Use the calculator below to enter your planned rollover balance and see the estimated annual carrying cost and fee drag as a percentage. Enter the depository storage line from the segregated or commingled quote you are actually being offered, plus the custodian account fee and any additional recurring lines. Verify the exact numbers in writing before signing paperwork.
Texas gold IRA fee-drag calculator
Texas gold IRAs charge mostly flat dollar fees (setup, annual custodian, storage). Flat fees take a much bigger bite out of a small account than a large one. Enter your numbers to see the drag.
Estimate only. Fee amounts vary by provider and are often not published; enter figures you confirm in writing. This tool ignores metal price changes and the dealer spread, which also affect returns. Not financial advice.
How to pick between segregated and commingled
The decision has three inputs: what your custodian and depository actually offer, how much extra you are willing to pay for the exact-serial trace, and what your long-hold in-kind distribution plan looks like. The step order below reflects the way the paperwork actually flows.
- Confirm what your custodian offers at your depository. Ask the custodian in writing for the storage models available and the exact pass-through dollar figure for each. STRATA and IRA Express publish these; IDS and CNT quote through the custodian; TPMD and the Texas Bullion Depository are segregated only.
- Decide whether you value exact-serial return. Segregated returns your specific bars or coins at in-kind distribution or sale. Commingled returns the same product and quantity from a pool. If you plan to ever take physical possession of retirement metal, segregated preserves the original mint packaging and serial number you bought.
- Read the fee gap in dollars, not percentages. A 75-dollar-per-year segregated premium at Delaware via STRATA costs 750 dollars over ten years. A 20 basis point vs 12 basis point spread at Brinks via IRA Express is 8 basis points, or 200 dollars per year on a 250,000-dollar account.
- Cross-check the insurance line for each model at your depository. Reputable depositories cover both segregated and commingled at replacement value under Lloyds-underwritten all-risk policies. Ask for the specific policy limit, underwriter name, and named exclusions in writing through your custodian.
- Sign the buy instruction naming the depository and storage model. The dealer prepares a buy instruction that specifies the coins or bars, the price, the depository, and the storage election. The custodian wires funds once you sign. Verify the segregated or commingled election on the paperwork matches your intent.
- Reconcile the first depository receipt against your election. After the dealer ships and the depository confirms receipt, check that the receipt reflects the storage model you elected and the account name. Ask the custodian to send you the receipt in writing so your records match the vault records.
Worked example: a Dallas 100,000-dollar rollover
Worked example
Consider a Dallas resident, age 63, who rolls 100,000 dollars from a former employer 401(k) into a self-directed IRA and buys IRA-eligible American Gold Eagles. The reader is comparing two storage elections at the same custodian pair (STRATA Trust, Delaware Depository).
Election A, non-segregated: 125-dollar STRATA account fee plus 100-dollar Delaware non-segregated storage line. Total recurring cost 225 dollars per year, or 0.225 percent of the balance. Over ten years at level fees, that stacks to 2,250 dollars in recurring depository plus custodian charges.
Election B, segregated at the same pair: 125-dollar STRATA account fee plus 175-dollar Delaware segregated storage line. Total recurring cost 300 dollars per year, or 0.30 percent of the balance. Over ten years at level fees, that stacks to 3,000 dollars, or 750 dollars more than Election A.
Reading the delta: 75 dollars per year buys the exact-serial return at in-kind distribution. For a reader planning to hold ten to fifteen years and take an in-kind distribution at RMD age, that is a modest premium for the specific original mint packaging. For a reader planning to sell inside the IRA before distribution, the commingled election returns the same product at market value with no functional difference.
Federal ordinary income tax applies to distributions regardless of the election (source: IRS Publication 590-B, checked July 2026). Texas has no state personal income tax, so no Texas layer applies (source: Texas Comptroller of Public Accounts, checked July 2026). Consult a Texas licensed tax advisor for your specific federal bracket.
When either model is a bad fit for you
Both storage models have honest downsides. Here is when each is the wrong choice.
Segregated is a bad fit if the annual premium meaningfully drags a small account. On a 25,000-dollar balance at Brinks via IRA Express, the 200-dollar segregated floor is 0.80 percent per year on the vault line alone, before custodian and premium costs. On a 25,000-dollar balance at Delaware via STRATA, 175 dollars segregated vs 100 dollars non-segregated is 0.30 percent per year of extra fee drag.
Segregated is also a bad fit if you plan to sell entirely inside the IRA before distribution. If you never take physical possession, the exact-serial trace has no operational use; the pool return at commingled satisfies the sale identically. The premium then buys legal comfort without a functional payoff.
Commingled is a bad fit if you plan a physical in-kind distribution and value the original mint packaging or serial number. The pool return will match the product but not the exact coin roll you bought. For readers who bought Proof American Gold Eagles specifically for the mint packaging, commingled defeats the point of the purchase.
Commingled is also a bad fit if the depository does not publish a specific vault dollar cap on insurance. At Brinks and CNT, the vault-level dollar cap is not published publicly for retail readers. The pooled model amplifies the importance of an accurate ledger and a well-covered policy; ask for both in writing before electing commingled at those vaults.
Either model is a bad fit if the custodian will not confirm the exact pass-through fee, the specific storage model, and the insurance policy details in writing. Verbal quotes shift; the buy instruction and the depository receipt are the records that survive an audit or a distribution years later.
Storage-model choice is not the largest lever on retirement outcomes. Dealer coin premium at purchase, custodian account fees, and the underlying volatility of the metal itself carry more weight over a ten-year hold. Segregated vs commingled is a legal-clarity and cost decision, not a return generator on its own.
Frequently asked questions
Common questions from Texas readers
Does the IRS require segregated storage for a gold IRA?
No. IRC section 408(m) requires that the physical metal be held by a bank or an IRS-approved non-bank trustee, but the statute does not prescribe segregated or commingled arrangement (source: 26 U.S.C. section 408 via Cornell Legal Information Institute, checked July 2026). IRS Publication 590-A does not specify the storage model. Each IRA custodian and depository sets the models they support.
Is commingled storage the same as unallocated storage?
No. Commingled storage pools physical bullion by product, and every ounce is backed by a specific bar in the vault; the client is returned the same product and quantity from the pool. Unallocated storage means the client owns a share of a pool with no reserved physical position. IDS Group explicitly rejects unallocated for IRA metal; most reputable US IRA depositories do the same.
What happens to my metal if the depository closes?
At a bailment or custody structure, IRA metal is not on the depository's balance sheet under either model. Segregated metal remains physically identified to your account and returns to you or your custodian. Commingled metal is inventoried on a ledger against the pool; you receive the same product and quantity from the pool position, provided the ledger is accurate. Insurance covers loss or shortage in either case at the published policy terms.
Does the Texas Bullion Depository offer commingled storage for a gold IRA?
No. The Texas Bullion Depository IRA Storage Services page confirms IRA holdings are segregated only and never commingled with other client metal (source: texasbulliondepository.gov IRA services page, checked June 2026). The retail non-IRA schedule at the state depository also runs on segregated tiered pricing. Commingled is not on the menu at Leander for either account type.
Which is cheaper at a 50,000-dollar Texas gold IRA balance?
Commingled is cheaper at that balance at both setups where the number is transparent. At Delaware Depository via STRATA Trust, non-segregated runs 100 dollars per year vs 175 dollars segregated. At Brinks via IRA Express, commingled hits the 125-dollar minimum vs a 200-dollar segregated minimum at that balance. Add the custodian account fee to both.
Can I switch from commingled to segregated after opening the IRA?
Yes, at depositories that offer both, subject to your custodian's process. Delaware Depository via STRATA Trust and Brinks via IRA Express both support a change in storage model on an existing account. The switch triggers a re-inventory of your physical position or a handling fee in some cases. Ask your custodian for the exact re-election procedure and fee before committing.
Does segregated storage change my federal or Texas tax treatment?
No. Federal ordinary income tax on distributions applies regardless of the storage model, per IRS Publication 590-B (checked July 2026). The 10 percent early-withdrawal penalty before age 59.5 also applies regardless. Texas has no state personal income tax, so IRA distributions are taxed federally only for a Texas resident under either segregated or commingled storage (source: Texas Comptroller of Public Accounts, checked July 2026).
Does segregated protect me if the depository is defrauded?
Fraud is where the segregated-commingled gap shows up in theory. With segregated, the physical position is either present or not, so a missing bar is a direct claim on the depository and its insurance policy. With commingled, a ledger shortage would be shared pro-rata across the pool, before insurance kicks in. In practice, Lloyds-underwritten all-risk policies at reputable US IRA vaults cover both scenarios at replacement value; verify current policy limits and named exclusions in writing.
Sources
- Internal Revenue Service, Publication 590-A (contributions to individual retirement arrangements), irs.gov/publications/p590a, checked July 2026.
- Internal Revenue Service, Publication 590-B (distributions from individual retirement arrangements; 10 percent early-distribution tax), irs.gov/publications/p590b, checked July 2026.
- 26 U.S.C. section 408 (individual retirement accounts, approved trustees, IRA-eligible bullion under 408(m)), law.cornell.edu/uscode/text/26/408, checked July 2026.
- Delaware Depository, IRA Services page (IRC 408 qualification, off-balance-sheet custody, segregated and non-segregated modes), delawaredepository.com IRA Services, checked July 2026.
- Delaware Depository, Storage and Transfers page (segregated vs non-segregated storage arrangements), delawaredepository.com Storage and Transfers, checked July 2026.
- STRATA Trust Company, Fee Schedule (Delaware Depository pass-through: 100 dollars non-segregated, 175 dollars segregated), stratatrust.com/fees, checked June 2026.
- IRA Express, IRAxp Precious Metals form (Brinks pass-through: 12 basis points commingled, 20 basis points segregated with dollar floors), iraexpress.com, checked July 2026.
- International Depository Services Group, Insurance page (allocated and segregated only; unallocated explicitly not offered), internationaldepositoryservices.com Insurance, checked July 2026.
- Bullion.Directory listing for CNT Depository (segregated, allocated, commingled storage models), bullion.directory CNT Depository, checked July 2026.
- Texas Precious Metals Depository, Pricing page (tiered percent rate schedule, 10-dollar monthly floor, segregated-only), web archive of texasdepository.com Pricing, checked June 2026.
- Texas Precious Metals Depository, Security page (Lloyds of London insurance, bailment model, SOC 2 certification), web archive of texasdepository.com Security, checked June 2026.
- Texas Bullion Depository, IRA Storage Services page (segregated-only for IRA accounts, state agency oversight), texasbulliondepository.gov, checked July 2026.
- Texas Bullion Depository, Schedule of Fees effective April 1, 2026 (retail non-IRA segregated tiered storage schedule), texasbulliondepository.gov Schedule of Fees, checked June 2026.
- Texas Comptroller of Public Accounts (Texas has no state personal income tax), comptroller.texas.gov, checked July 2026.
- US Tax Court, McNulty v. Commissioner (2021) (home storage of IRA metal counts as a distribution; not directly on storage model but on IRC 408(m) qualifying custody), ustaxcourt.gov, checked July 2026.