@Jennifer ScheidBelow is a link from the IRS which indicates when there is an exception to the premature withdrawal penalties for IRA accounts.https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributionsYou are allowed to pull $10K out for the purchase of a home for first time buyers.

*For all arrearage under the Lease/Rental Agrement, rent due for premature termination of Lease Agreement by the Tenant(s) and for Utility Bills not paid by the Tenant(s) if it was their duty to pay for utilities per this lease agreement.

Second reason: I plan on leaving the property to my wife to provide income for the family's support in the event of my pre mature death She is ill suited to manage properties and I would prefer professional management in this case.

I personally agree with @Andy Collins that having an LLC for just one property is a bit premature, however, it sounds like you intend to grow into it.

Probably to protect (financially) your wife and children should you die prematurely.

Plus, I did have an issue where the rekey pin fell out prematurely.  

Are the wife and kids able to leave the property, essentially ending the lease prematurely?

I figured it was a little premature to incorporate, and this info definitely helps.

However, if you were to do so you will have to pay state and federal income taxes, plus penalties both on state and federal level (because of premature distribution from retirement account).

I'm just throwing it out there...if you are asking that basic level of a question, you might be jumping into the deep end of the pool without floaties prematurely.