Category Archives: Stewardship & Charity
Do You Owe Zakat on Your 401k?
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 […]
20 Questions on Zakat: A quick and easy guide to understanding Zakat
Featured in Sharia Portfolio‘s Newsletter, these are 20 Questions on Zakat which I wrote as a quick and easy guide to understanding Zakat. Be sure to get a copy of my book “Simple Zakat Guide” which has all this information and more, plus calculation formulas and worksheets. Enjoy 🙂 ===================================== 1. Who has to pay […]
Zakat on Pension and Retirement Plans
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? The answer: Investopedia defines a pension plan as: A type […]
Do I have to pay Zakat on my stocks and shares?
Do I have to pay Zakat on my stocks and shares? Answer: 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. If you are using them for a long term investment (something you plan […]
Do I pay Zakat on savings only or on my checking account too?
Question: Do I pay Zakat on my Savings only or on my checking account too? Answer: 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, checking accounts, actively invested shares or Mutual Funds. It also includes cash […]
20 Questions on Zakat: A quick and easy guide to understanding Zakat
1. 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 […]
Zakat on Pension and Retirement Plans
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?