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I see that you can create another IRA to avoid this, however this particular IRA only has $20K in it, so it would not yield very high SEPPs. I also read that once you start this SEPP plan you cannot contribute to the IRA. True?
I think you missed something here.
Step 1) Big IRA stache.
Step 2) Move
part of the IRA to a newly opened rollover-IRA (one SEPP-IRA, one Emergency-IRA), basically enough balance to make you feel comfortable for emergencies and any shortfalls from SEPP'ing the remaining original balance. SEPP is per IRA account, so you can SEPP an IRA, but then contribute to another IRA in your own name without issues. You can SEPP one IRA, and take the penalty, or do Roth conversions on a different one.
Step 3) SEPP the SEPP-IRA to create some base income to mostly or completely cover your needs.
Step 4) Take the 10% penalty for any extra you need (emergency or otherwise) on withdrawals from the Emergency-IRA.
Step 5) At age 62 work with an accountant before messing with the SEPP-IRA, as you need to cover the full 60 months carefully. After that you can re-merge the accounts to reduce paperwork related hassles.