Strategic RMD Withdrawals Ahead of Fed Rate Cuts
Retirees facing required minimum distributions (RMDs) in 2025 may benefit from early withdrawals to capitalize on current high-yield opportunities before anticipated Federal Reserve rate cuts. With the central bank likely to reduce rates as soon as October 29—and potentially again in December—locking in today’s elevated CD or high-yield savings account rates could preserve returns that may soon disappear.
The IRS mandates RMDs by December 31 each year, but delaying withdrawals until year-end isn’t always optimal. For those who don’t immediately need the funds, redirecting distributions into top-tier fixed-income vehicles now offers a hedge against declining yields. The calculus shifts when preservation of capital outweighs potential tax-deferred growth.
