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Updated over 12 years ago,
is it okay to pocket excess contributions distributed from a sdira?
What happens to any excess contributions to a Self-Directed IRA (SDIRA) once they're distributed (removed) from the IRA? If they go into my personal bank account, that seems to violate IRS "self-dealing" warnings. Anybody with experience in this area?
I want to use my IRA funds to buy well-performing cash-flowing rental properties. The rental returns will go back to the IRA to build up for the next purchase and so on. I envision a point in the future at which the combined rental returns from the properties will eventually exceed the yearly contribution limit for the IRA, hence my question.
Thanks