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.
There is general agreement that Zakat is not to be given to anyone who is fighting against Islam and Muslims; this is a point that does not need much elaboration. As for others who are non-combatant, and do not show enmity towards Islam and Muslims then medieval scholars differed as to whether such a person can be given Zakat.
Who has to pay Zakat?
Zakat is due on the wealth of any Muslim, young or old, male or female, that is held in savings for one calendar year and is more than the Nisab.
There are three popular opinions about paying Zakat on Jewelry. One that states it is never paid, another that differentiates between that worn for adornment versus that held for value, and the third that states any jewelry is liable for Zakat as long as it reaches Nisab. The more correct of these three opinions is the third, that Zakat is always paid without exception on any gold or silver that is in possession for one year or more.
You may not have a 401k plan or an IRA, but instead a more traditional pension. If this is the case, you are not alone, and like many other people are asking yourself:
Do I have to pay Zakat on my pension or retirement plans?
If you own stock in a company (or shares as they are called) then to determine their liability for Zakat you should look at the investment strategy you are using.
Zakat is due on ANY surplus wealth. It must be more than the Nisab and is in your possession after one year passes. This includes: Savings accounts,
Who has to pay Zakat?
Zakat is due on the wealth of any Muslim, young or old, male or female, that is held in savings for one calendar year and is more than the Nisab.
Example: If both you and your children have separate savings of 1000 dollars or more for one year, you must pay the Zakat on both accounts, not just yours. $25 for your savings, and $25 for your childs.
You may not have a 401k plan or an IRA, but instead a more traditional pension. If this is the case, you are not alone, and like many other people are asking yourself:
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