Consider Taking 2025 RMD Early Amid Expected Fed Rate Cuts
Retirees facing required minimum distributions (RMDs) in 2025 may benefit from withdrawing funds early to capitalize on current high CD yields before anticipated Federal Reserve rate reductions. The central bank is projected to cut rates as soon as next week, with further decreases likely by December.
Locking in today's elevated CD rates now could prove advantageous compared to waiting until year-end, when yields may have declined. For those not immediately needing the cash, high-yield savings accounts offer liquidity while still generating returns.
The strategy contrasts with conventional wisdom of delaying RMDs to maximize tax-deferred growth. However, the shifting interest rate landscape creates a unique opportunity to secure favorable terms before they potentially disappear.
