In what order are amounts treated as withdrawn?
| Layer | IRS treatment |
|---|---|
| Regular contributions | Distributed first; establish the remaining undistributed basis. |
| Conversions and eligible rollover contributions | Generally earliest first; within the applicable year, taxable amounts before nontaxable amounts. |
| Earnings | Distributed last; nonqualified earnings may be taxable. |
IRS Publication 590-B (2025) · as of 2026-11-11
The IRS requires aggregation of Roth contributions and distributions for this purpose. A custodian statement from only the metal account may not show the full tax history. Selling a particular bar inside the IRA does not select the tax layer that a later distribution reaches.
IRS Publication 590-B (2025) · as of 2026-11-11
IRS IRA FAQs: investments and custody · as of 2026-11-11
Why can a converted amount produce additional tax?
The IRS conversion recapture rules may impose the 10% additional tax on a distribution attributable to amounts included in income on conversion when withdrawn within the applicable five-year period. A separate period applies to each conversion, and exceptions can apply.
That is different from including the same taxable conversion principal in gross income again. Earnings are another layer with their own income-tax and additional-tax questions. Avoid the shorthand that a conversion is immediately available under every circumstance.
IRS Publication 590-B (2025) · as of 2026-11-11
What can an exception change?
The IRS lists age 59½, disability and other specified circumstances as possible exceptions to the additional tax. Each has conditions; the mere presence of a financial need is not enough to establish one. An additional-tax exception does not automatically turn a distribution into a qualified distribution.
IRS Publication 590-B (2025) · as of 2026-11-11
This page does not determine an exception for a reader. Review the actual IRS conditions and the records supporting them. If earnings are included, determine their income treatment independently of the question about additional tax.
IRS Publication 590-B (2025) · as of 2026-11-11
What should be reconciled before requesting payment?
Collect regular contributions across Roth IRAs, prior withdrawals, conversion years and the taxable and nontaxable portions of those conversions. Also establish the first Roth contribution tax year. Ask the custodian how it will report the distribution, including whether metal or cash is being distributed.
Physical metal must remain in the appropriate custody arrangement until properly distributed. Taking possession first and trying to describe it later as a tax-free return of contributions leaves both custody and tax reporting unresolved.
IRS Publication 590-B (2025) · as of 2026-11-11
IRS IRA FAQs: investments and custody · as of 2026-11-11
Request the provider’s information.
Goldco’s kit explains its offering. Confirm the custodian, metal eligibility, written fees and the tax treatment of your own transaction before acting.
Request the Goldco kitWe may earn a commission if you request a kit or open an account. It does not change what you pay. This is general information, not financial or tax advice.