Texas Bullion Depository vs Private Depositories

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The core difference in one paragraph

The Texas Bullion Depository is a state agency of Texas. The private IRA depositories used by most gold IRA custodians (Delaware Depository, Brinks Global Services, IDS of Delaware and Texas, CNT) are for-profit private companies. Both models can legally hold IRA metal because the IRS approves the trustee involved, not the building.

The state depository was created by House Bill 483, signed by Governor Greg Abbott on June 12, 2015. It opened in 2017 in Leander and is operated under contract by Lone Star Tangible Assets LP. LSTA received IRS nonbank trustee approval in 2023, which is what opened IRA storage at the facility. Equity Trust Company is currently the sole self-directed IRA custodian publicly listed on the depository IRA page.

Private IRA depositories reach the same IRS gate through the self-directed IRA custodian, which is itself an IRS-approved bank or nonbank trustee. That is why a private depository can hold IRA metal even if the storage company itself is not a trustee: the custodian is the legal trustee, and the depository simply houses the assets under that custodial title.

How each venue is legally allowed to hold IRA metal

The federal rule sits in Internal Revenue Code Section 408 and Treasury Regulations Section 1.408-2(e). An IRA must be held by a bank, an insurance company, or an IRS-approved nonbank trustee. The Department of the Treasury publishes the list of approved nonbank trustees and custodians through Revenue Procedure updates.

At the Texas Bullion Depository, the operator LSTA sits on that IRS list as an approved nonbank trustee since 2023. That legal status is what allows the state facility to hold IRA-titled metal directly through the custodian arrangement described on the depository IRA page.

At a private IRA depository, the trustee role belongs to the partnered self-directed IRA custodian, such as Equity Trust, STRATA Trust, GoldStar Trust, or Kingdom Trust. The custodian holds the IRA as trustee under IRC 408. The depository simply provides insured, secured storage under the custodian direction.

The practical result: at both venues, you never take personal possession of the metal. The 2021 United States Tax Court ruling in McNulty v. Commissioner confirmed that home storage of IRA metal is a deemed distribution, taxable and (if under age 59 and 6 months) subject to the 10 percent additional tax.

Security, audits, and who watches the vault

The Texas Bullion Depository publishes a Class 3 vault rating, the highest commercial rating. Vault features include bullet-resistant doors, biometric access controls, and 24/7 monitored surveillance. Security staff include commissioned police officers and former military personnel with SWAT experience.

Audit oversight at the state depository runs through the Texas Comptroller of Public Accounts, with regular audits by a representative of the Comptroller office. State oversight is the structural feature that private depositories cannot match by definition. It is not a claim of better security; it is a different kind of accountability.

Private IRA depositories publish their own audit and security posture. Delaware Depository, Brinks Global Services, IDS, and CNT all publish some combination of Class 3 vault construction, 24/7 surveillance, and independent audit reports. Insurance is typically underwritten through Lloyd of London, which is the same insurance market the state depository uses.

Two useful checkpoints for a reader: ask the private depository for its most recent independent audit letter, and ask the state depository for the Comptroller audit posture. Both are legitimate questions before signing.

Segregated vs commingled: what each venue offers

The Texas Bullion Depository IRA Storage Services page states that IRA metals are stored separately and never commingled. That means the specific bars or coins your IRA owns are the specific bars or coins returned on withdrawal. It is more restrictive than the option set at some private depositories.

Private IRA depositories often let the custodian choose between segregated storage and commingled storage. Commingled storage pools IRA-approved metal of the same type and fineness across accounts; the depository returns the same type and amount, not the same specific bars. Commingled storage is generally cheaper than segregated because it is more space-efficient.

Neither model changes what you own inside the IRA. The custodian records the ounces on your account statement, and the depository books the ounces against the custodian holding. The choice is really about how the metal is physically stored and how much the storage fee reflects that.

If you specifically want to receive the exact serial numbers you deposited, choose a venue and format that guarantees segregated storage. If you are cost-sensitive and comfortable with a same-type return, commingled at a private depository may be a better fit.

Custodian access and the paperwork path

The custodian list is where the two models differ most for a new account. At a private IRA depository, most of the major self-directed IRA custodians already have a working relationship. That covers Equity Trust, STRATA Trust, GoldStar Trust, Kingdom Trust, Madison Trust, IRA Financial Trust, and New Direction Trust, among others.

At the Texas Bullion Depository, Equity Trust Company is currently the sole self-directed IRA custodian publicly listed on the depository IRA storage page. The depository states that it expects to expand its custodial relationships over time and asks readers to check back for updates.

The practical implication for a rollover: if your preferred dealer works only with a custodian not yet on the depository list, you either switch custodians or you pick a different vault. Switching custodians is not hard, but it is paperwork you may not need to do if a private depository already fits.

Ask your gold dealer, in one email, which depositories and which IRA custodians they work with. That single answer usually narrows the choice quickly.

Fees and the published rate you can actually see

The Texas Bullion Depository publishes a public fee schedule for non-IRA accounts. The schedule effective April 1, 2026 uses a flat-rate model on average daily account value. The tiers are 0.49 percent up to $499,999, 0.44 percent up to $999,999, 0.39 percent up to $2.49 million, and 0.34 percent up to $4.99 million. Above $5 million the annual rate is negotiated. A $25 quarterly minimum applies to the smallest tier.

The IRA price at the depository follows a different rule. Per the depository IRA Storage Services page, IRA storage fees are negotiated between the gold dealer, the IRA custodian, and the depository contractor. The public flat-rate schedule does not necessarily apply to an IRA account.

Private IRA depositories do not publish a comparable public schedule either. The IRA custodian typically quotes a bundled annual figure that combines custodian recordkeeping, depository storage, and sometimes a shipping allowance. Numbers vary by custodian and by whether you choose segregated or commingled.

Get every fee in writing from the custodian before signing: the annual IRA custodian fee, the annual storage fee, any shipping charge for the initial transfer, and the withdrawal fee if you take an in-kind distribution later. That written list is the only apples-to-apples comparison you can make.

Estimate the fee drag on your IRA

Total fee drag on a gold IRA is the sum of the custodian fee, the storage fee, and any dealer markup, divided by the account balance. The calculator below converts your balance and an estimated annual fee into a percentage, so you can compare a Texas Bullion Depository quote against a private depository quote on the same basis.

Worked example: a Houston retiree at $180,000

Side-by-side comparison table

The Texas resident angle: what actually changes

Two things really change for a Texas resident who picks the state depository. Both are structural, not marketing.

First, the vault sits inside the state where you already live. That matters for readers who value jurisdictional simplicity: the metal, the account holder, and the state authority are in the same place. It does not confer any federal tax break; it is a location and oversight feature.

Second, the depository is supervised by the Texas Comptroller of Public Accounts. That is a public-agency audit posture rather than a private-audit posture. Whether that matters to you depends on how you weigh state agency oversight against a private firm audit letter.

What does NOT change for a Texas resident: the federal IRA rule stack. RMD age is 73 for those born 1951 to 1959 and 75 for those born 1960 or later starting 2033. The 10 percent early-withdrawal penalty applies before age 59 and 6 months. Ordinary income tax applies to distributions from a traditional IRA. These federal rules apply the same at Leander, Wilmington, Grapevine, Bridgewater, or anywhere else an IRA custodian holds metal.

Texas has no state personal income tax, so a Texas resident does not owe a state income tax layer on an IRA distribution regardless of where the metal sits. That is a residency benefit, not a depository benefit.

When the Texas depository is the wrong call

Frequently asked questions

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