3 Bucket Retirement Plan for FRS DROP Rollovers

Don Anders explains how to use the 3 Bucket Retirement Plan for FRS DROP Rollovers.
The Three Bucket Retirement Plan gives diversity for Fixed, Liquid, and Growth investments for people looking for a diversified investment plan for their Florida Retirement System DROP Rollover.
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Since the title of the video refers to DROP money, these accounts would probably be held within an IRA. Do RMD withdrawals come out of bucket 1 and into a brokerage account if not needed for expenses? Do you ladder the bucket 2 investments or just use interest earnings and no-penalty withdrawals to refill bucket 1?