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You are age 51.

If you rollover into an IRA and then take Substantially Equal Periodic Payments (SEPP)based on life expectancy and a "reasonable" rate of interest (unreasonably low) until age 59 1/2, then you would have income tax on the withdrawal amount, but qualify for a penalty exception.

For complete flexibility, I would
-1- determine the amount of income needed (NEVER to be changed for 8 1/2 years) then back into the IRA balance needed to come up with that amount.
-2- Open 2 IRAs
IRA #1: Amount needed to fund the SEPP distribution
IRA #2: Leftover amount (gives flexibility if you need to hit it for extra cash)

You need either a CPA who is well versed in SEPP payments or an IRA provider who is well versed in SEPP payments. Some will tell you that a "reasonable" rate of interest is anything you want. There are IRS Private letter rulings indicating differently. Must be within 20% plus/minus of some Treasury rate.

*Cat
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