We present results from the first high-resolution, high signal-to-noise ratio spectrum of SN 2002ic. The resolved Halpha line has a P Cygni-type profile, clearly demonstrating the presence of a dense, slow-moving (similar to100 km s(-1)) outflow. We have additionally found a huge near-infrared excess, hitherto unseen in Type Ia supernovae. We argue that this is due to an infrared light-echo arising from the pre-existing dusty circumstellar medium. We deduce a circumstellar medium mass probably exceeding 0.3 M-circle dot produced by a mass-loss rate greater than several times 10(4) M-circle dot yr(-1). For the progenitor, we favour a single-degenerate system where the companion is a post-asymptotic giant branch star. As a by-product of our optical data, we are able to provide a firm identification of the host galaxy of SN 2002ic.