You will have to pay the early distribution penalty if your are under 59 1/2 years old, the entire account will be subject to taxation and you will not be able to restore it.

Steven Hamilton II is always right on the taxation rules.

Any gain on the sale is ordinary income, subject to tax at your current marginal rate and self employment tax (SET).

This is a re-post, but if you haven't seen it, I hope it helps: As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues.

The loans would be from non-retirement funds for non-owner-occupied properties.Normally, income from such loans would appear as interest income on one's personal tax return, but, especially with the Affordable Care Act, there might be tax advantages to forming a one-person C-Corp and drawing a salary, despite factors such as payroll taxes, the overhead from reporting and tax filing requirements, and double taxation when profits are distributed.Interest income isn't compensation to the IRS, so if one only has interest income, one can't contribute to a 401k or IRA.

If I can flip a home using my own hands and tools, and can evaluate people professionally for court and other high stakes matters, I can be a decent landlord.Sell House scenario:House sells for 550K (worst case), 30K to realtors, pay off 295K mortgage = 225K cash in hand.At a 5% return, 225k generates 628 after 33% taxation.$2200 rent - 628 = 1571/mo cost of livingAt a 4% return (worst case?)

They will avoid licensing and taxation, so don't bother.Deal with complaints as they arise, because there aren't many.  

This allows pass-through (single taxation) of income, and *potentially* some savings on self-employment taxes on part of the income.

I suggest you speak with an accountant in Vietnam that has experience wit the US taxation system.Any attorney should be able to set up an LLC for you.

This is a re-post, but if you haven't seen it, I hope it helps: As it relates to asset protection strategies, think of the work you do with a legal adviser who, upon considering factors such as net worth, estate planning issues and taxation will offer advice regarding entity and ownership issues.