@musliminvesting: Do you have to pay zakat on your retirement accounts? 📈 There are 2 types of retirement accounts: 1️⃣ Mandatory (e.g. Superannuation 🇦🇺 & State Pensions 🇬🇧) 2️⃣ Voluntary (e.g. 401(k) 🇺🇸, RRSP 🇨🇦 & KiwiSaver 🇳🇿) It’s a pretty unanimous opinion that for mandatory retirement accounts, you are not liable for zakat on them until you can fully access them. For voluntary pension schemes, there are 3 major opinions: 1️⃣ You don’t need to pay zakat on it until you can legally access it 2️⃣ You need to pay zakat on it but you can deduct any withdrawal fees or taxes first 3️⃣ You have to pay zakat on the total balance 🚨 IMPORTANT: Once you’ve decided which opinion to go with, to calculate the zakat on your pension account, you need to first work out the split of assets in the portfolio. If you can’t access this information, contact your pension provider to find out how much of your retirement portfolio is made up of stocks, cash, gold etc. as different assets have different zakatable amounts. E.g. For gold, silver, and cash, the total amount is zakatable. For stocks and shares, 25% of the total stock portion is zakatable. ➡️ Follow @musliminvesting to learn more about Islamic finance and Halal investing - #islamicfinance #halalinvesting #generationalwealth #musliminvesting #zakat #charity #donations #retirement #pension #super #kiwisaver

Muhammad Lambat

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Region: NZ

Sunday 16 March 2025 07:43:27 GMT