A bank is selling developed lots for nearly 1/3 the cost to the original developer.

I would like to take money out of my IRA type account (Government TSP) and purchase them for future business venture.

Is there a way to do this without paying tax on the withdrawl. I am past the 59 1/2 point, so there is no penalty, but the taxes on a $160 withdrawl would kill the deal.

Sorry, no way to avoid incom taxes on the withdrawal of pre-tax contributions and tax-deferred earnings from an IRA (unless it's Roth).

However, there may be a way to invest in this property inside your IRA. This would allow you to invest without actually making a withdrawal. Real estate investment inside an IRA is possible, although it there are lots of rules you have to follow to ensure that there is absolutely no inter-mingling of IRA and non-IRA monies. Do a Google search for "IRA real estate investment" and you'll find lots of info on this. You may have to roll your existing account to a separate IRA that you establish specifically for this investment.