SEP IRA

Question: If you set up an LLC to fund from your SEP-IRA to buy real estate as an investment (checkbook IRA style) how?

do you do this?

I can set up an LLC easy enough, but how do you work this so that you don’t get early distribution penalties/fees?

I want to buy a house using SEP-IRA money, which would be totally out of the question is I use a custodial company or pay for this outside (costs thousand$). It should be very simple, just need to know the hows.
Anybody?
not to live in, strictly for investment, collect rent, put it into IRA, write off taxes

Answer: You can’t do this if you are going to live in the house. The entire distribution would be subject to the 10% early distribution penalty under Section 72 and it would also be subject to income taxes.

If the house is an investment, you can’t do it directly. Not to mention that it would be a tax-inefficient way to invest your IRA money. There are a few banks that serve as trustees for this type of IRA, but not many, and they charge fees high enough that it wouldn’t be worthwhile.

I hope this helps.
Gary