I turn 50 in October and can withdraw the money without penalty and simply pay the tax at my normal income tax rate.

Make sure you investigate the franchise taxation implications of using this type of arrangement.  

Is there a double taxation involved with those LLCs?

Lease Option Articles http://www.biggerpockets.com/articles/category/lease-options Sub2 is a way to buy without a bank too and resell, rent or rent to own http://www.biggerpockets.com/forums/12/topics/93968-building-a-rental-portfolio-with-subject-to-lease-optionsSandwiches are risky, lots of pitfalls.Lease option assignments are easier, less risk, still need to be careful.Re: Dodd Frank, use a lease and a straight option without rent credits.Re taxation, the IRS could consider the lease option a disguised installment sale if certain aspects of the lease option were omitted or not performed.To avoid a re charachterization of the lease option,1.

...that can deal with cross border taxation and setting up an LLC for me.

The 2009 summary of US income and taxation http://www.irs.gov/pub/irs-soi/09in11si.xlsTo balance just one year's Federal budget, everybody's income tax would have to AVERAGE 50% to just break even with spending.

That is someone who is licensed by the Department of Treasury in Taxation.

You should just recognize them as interest.I am licensed by the Department of Treasury in taxation.

I'm an Enrolled Agent which means I'm licensed by the Department of Treasury in Taxation.

So that 6% penalty would be recurring.You are better off not doing that, and putting the income into another investment vehicle, that you can later roll over to the Roth account(pay the tax on then).I'm not familiar with how your business is set up; however, if you are self employed and have arranged a SEP or solo 401k you can contribute the maximum and then roll over the account later on to a roth IRA electing to pay the tax on it at that time.If you chose to just pay the 6% each year you would have to make a hefty return each year especially once you add in fees.You would not want to use that much to over contribute to the account for example if you flip a home with it in the account you will then have to pay tax at your regular rate on the home as it will not be considered IRA income as you have to remove both excess contributions AND gains on the excess contributions.You also could suggest that you use the excess toward the next year's contribution, provided you are eligible to make one.