When you hear the words “retirement plan,” what comes to mind? For most people, it’s something simple—a 401(k) plan, usually company-sponsored.

But what many people don’t realize is that it’s possible to go beyond the basic options offered by a traditional brokerage. Stocks and bonds are great, but what about alternative assets like real estate and gold that are also permitted within IRAs under IRS rules?

Many investors ask: can you hold real estate or gold in an IRA? The answer is yes—but there are important limitations to understand.

Real Estate Inside an IRA: What’s Actually Allowed?

Yes, real estate can absolutely belong in a retirement plan—but not just any real estate, and not in just any way.

Through a Self-Directed IRA, investors can hold:

• Single-family rental properties
• Multi-family properties
• Commercial real estate
• Raw land
• Private real estate partnerships
• Real estate notes and mortgages
• Tax liens and deeds

There are, of course, important rules. You can’t simply place your personal residence into an IRA and call it retirement investing. You can’t live in the property. You can’t vacation there. You can’t rent it to yourself, your spouse, your parents, your children, or other disqualified persons.

You also can’t perform work on the property yourself. The IRS does not allow “sweat equity” inside an IRA.

All income must flow back into the IRA, and all expenses must be paid from the IRA.

Precious Metals in an IRA: What Qualifies?

Real estate isn’t the only alternative asset that can fit inside a retirement account. Precious metals come up just as often.

Gold, in particular, has a long-standing reputation as a hedge against inflation and market volatility. But just like real estate, you can’t simply buy any gold coin and drop it into your IRA.

The IRS sets strict purity standards. Gold must meet high fineness requirements, and the same applies to silver. Platinum and palladium also qualify under similar rules. Certain government-issued coins are allowed, but many collectible or rare coins are not.

Why does this matter? If your investment is classified as a collectible, it generally cannot be held in an IRA.

There’s also a storage rule that often surprises new investors. You can’t store IRA-owned gold at home. The metals must be held by an approved depository through your IRA custodian. This separation keeps the account compliant and preserves its tax-advantaged status.

(You can find more details on our precious metals page.)

Understanding the Limitations Before You Invest in Alternatives

So do alternative assets belong in a retirement plan? A better question might be whether they belong in your retirement plan.

Alternative assets offer opportunities you might not otherwise access through traditional accounts. A Self-Directed IRA opens the door to these investments—but with that flexibility comes responsibility.

You need to:

• Understand prohibited transactions
• Avoid self-dealing
• Ensure all income and expenses stay within the IRA

For some investors, that level of control is exactly what they want. For others, traditional assets may feel simpler.

Neither approach is automatically right or wrong. What matters is aligning your retirement account with your investment strategy and long-term goals.

Interested in learning more about Self-Directed IRAs?  Contact American IRA, LLC at 866-7500-IRA (472) for a free consultation.  Download our free guides or visit us online at www.AmericanIRA.com.