Thank you for the great lecture. It was exactly what I was looking. One thing I would like to point out that in the lecture you suggest that US doesn’t not have a mandatory retirement account in which you are automatically enrolled and have no control over. The Social Security that is deducted from everyone in America is a retirement account in which the employer has to match 1 to 1 and the government manages it and you do not have access to it till you retire. So I believe as per your explanation that will not be Zakatable and still be your retirement savings.
Two Questions: 1. How would you consider 529 accounts? a part of me considers them as havens (like you put it :-) ) but there are penalties on early withdrawal unless used for studies, Question 2. Unvested Stock. Say your company gives you Stock but its unvested for the next 2 years, you will also lose it if you leave the company before the vesting period. (i consider the amount zakat liable after the vesting date, but would appreciate your thoughts. Thanks for addressing this topic. btw the example you used about forced Retirement accounts that are non Zakat liable in the mid east countries, you could say in US that's equivalent to Social Security.
Assalamualaikum Shaykh, what is the ruling on taking a loan on your 401k instead of withdrawal? Since we will be paying an interest to our own account is it Halal ?
Salam Sheikh, As much as I appreciate this lecture, the idea of having to calculate what bracket the IRS is going to put me in , is confusing and daunting to say the least, especially when one files jointly and when your spouse also has a 401k 😭😅
Sh. Yasser, I hope you can read my question. I called my 401k fund manger he they told me I only have access to 2% of the total fund while the total fund is funded 50% by me and 50% by employer. He also mention I can also have access to 50% if I one of the following apply to me: 1- Buy House. 2- Huge medical bill. Etc. So should I pay Zakat on 50% or 2% which I have access to it? Thanks
sounds like you haven't been completely vested. based on logic explained by the shaikh, you have to pay zakat on the amount that you have access to minus the early withdrawal penalty and minus the taxes. So if you can only withdraw 2% as of today, then that is your zakat eligible portion. As that % increases, your zakat eligible amount increases. Allah knows best.
Is I place my money in bank and take a yearly interest , do I pay on interest or the cash in bank ? I am an old lady if I pay from the cash after few years it will finish , no other income . What do I do ?
Thank you very much for this lecture but I have small doubt about 401k How do we know companies which are taking 401k money for investment are investing our money in Halaal way what if our money is use to do some haram business ? I am new to USA still I don’t understand the system very well. Please explain it
Sheikh keep it up u doing a good job , sometimes get controversial for small minds , but alhumdulillah fiqh is good , also I've seen ur kulafa series , can u also do a tab'i and taba tab'i series too ?
Thank you for the great lecture. It was exactly what I was looking.
One thing I would like to point out that in the lecture you suggest that US doesn’t not have a mandatory retirement account in which you are automatically enrolled and have no control over.
The Social Security that is deducted from everyone in America is a retirement account in which the employer has to match 1 to 1 and the government manages it and you do not have access to it till you retire.
So I believe as per your explanation that will not be Zakatable and still be your retirement savings.
Do you have an answer to this question yet?
Thanks for tackling this topic Shaykh 👍. Our pension fund (a.k.a. Superannuation) in Australia is quite different to the US 41k.
Two Questions: 1. How would you consider 529 accounts? a part of me considers them as havens (like you put it :-) ) but there are penalties on early withdrawal unless used for studies, Question 2. Unvested Stock. Say your company gives you Stock but its unvested for the next 2 years, you will also lose it if you leave the company before the vesting period. (i consider the amount zakat liable after the vesting date, but would appreciate your thoughts.
Thanks for addressing this topic. btw the example you used about forced Retirement accounts that are non Zakat liable in the mid east countries, you could say in US that's equivalent to Social Security.
Assalamualaikum Shaykh, what is the ruling on taking a loan on your 401k instead of withdrawal? Since we will be paying an interest to our own account is it Halal ?
Salam Sheikh, As much as I appreciate this lecture, the idea of having to calculate what bracket the IRS is going to put me in , is confusing and daunting to say the least, especially when one files jointly and when your spouse also has a 401k 😭😅
Salaam from Nottingham Uk
Sh. Yasser, I hope you can read my question. I called my 401k fund manger he they told me I only have access to 2% of the total fund while the total fund is funded 50% by me and 50% by employer.
He also mention I can also have access to 50% if I one of the following apply to me: 1- Buy House. 2- Huge medical bill. Etc.
So should I pay Zakat on 50% or 2% which I have access to it?
Thanks
sounds like you haven't been completely vested. based on logic explained by the shaikh, you have to pay zakat on the amount that you have access to minus the early withdrawal penalty and minus the taxes. So if you can only withdraw 2% as of today, then that is your zakat eligible portion. As that % increases, your zakat eligible amount increases. Allah knows best.
So why can the argument on calculating 401K not be used for Social security early withdrawal regardless of a person not withdrawing early?
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Is I place my money in bank and take a yearly interest , do I pay on interest or the cash in bank ? I am an old lady if I pay from the cash after few years it will finish , no other income . What do I do ?
Thank you very much for this lecture but I have small doubt about 401k How do we know companies which are taking 401k money for investment are investing our money in Halaal way what if our money is use to do some haram business ? I am new to USA still I don’t understand the system very well. Please explain it
There are funds that are compliant. Amana Funds (Saturna Capital) is one of them. I am not a scholar so you should do your own research.
Thanks for clarifications . But is Zakat due on the amount right now or the least value in the last Hijri year?
How to calculate the zakat if I give the loan to someone and he didn’t pay me back.
You have to proof hardship to withdraw
Sheikh keep it up u doing a good job , sometimes get controversial for small minds , but alhumdulillah fiqh is good , also I've seen ur kulafa series , can u also do a tab'i and taba tab'i series too ?
What time zone y’all in? It’s 7:30 here in va
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Yasir Qadi is based at EPIC which is in Texas