Yeah, the lip is about 3/16" but between the flex in the washers (even though 3 were tack welded together) and the fact that the threaded rod did turn a bit even with 2 nuts on the washer side, I couldn't determine if I had done it enough. So I just turned it until I thought I might damage the seal.
BTW, I used a tie rod fork to remove the seal. It took me about 1 minute. I know some people have had some trouble removing these seals. The fork worked perfect. Plus they're cheap and good for removing tie rods too.
1994 Wrangler YJ
31x10.5x15 BFG MT