What Dusty said. I was scrolling through this thread preparing to say that. Can also use a flat file with teeth on the edge. File the threads, parallel to the nipple's length. Position the file so the edge will create a nearly square surface positioned so it'll cut into the rust as the nipple goes clockwise. The flat side of the file will create a ramp leading to the notch with that edge. Even a chain saw file. Cut deep enough to form a semi-circular cut. Salvaged a pool pump that had rusty steel stuck in its plastic housing. That time I used a pipe plug, but a nipple 4-6" long would be good for the water heater since you can see how it's lining up. Don't want to cross thread either the chaser or the anode itself.