I have a client who plans on starting a 72t this October 2020. She is 52 years old and plans to withdraw $3000 per month ($36,000 annually). If she starts monthly in October, it looks like she needs to take a lump sump of $27,000 for the previous 9 months of this year.
One thing we're thinking about is for her to take the $9,000 in one of her IRA accounts (smaller IRA) and pay the 10% penalty for 2020. Then begin the 72t in Jan 2021 on the new 72t IRA (bigger balance). It's seems simpler than worrying about which year it starts and the extra $27,000 withdrawal she doesn't need this year. Thoughts?