You have a good job that provides a 401k, with a good amount of money in the account.
Do you owe zakat on your 401k?
You need a solid answer. There are thousands of dollars per year at stake, not to mention your duties as a Muslim.
The challenge of Islamic personal finance in the US
I’ve heard questions like this since I first accepted Islam, more than 20 years ago.
To understand Islamic personal finance, one must be a scholar of both Islamic law and modern finance. Very few people have this training. As a result, ordinary American Muslims struggle to find answers to basic financial questions.
I have now studied both Islamic law and modern finance for almost two decades. I have earned both ijaza and a graduate degree in fiqh, and I have worked professionally in banking and finance for 10 years. [Read more…] about Do You Owe Zakat on Your 401k?