Is zakat obligatory on money saved in a retirement account that has reached the nisab, but the saver does not have 100% control over it?
The ruling of differs depending on the source of funds in the investment account:
Firstly: The money that the company pays to the bank for investment, which then reverts to the employee after retirement: There is no Zakat due on it; due to incomplete ownership and the inability to dispose of it. Zakat becomes due on it for one year only after its receipt.
Secondly: The money that the employee himself pays into this investment account: Zakat becomes due on it every year; because it is his money, and the fact that he is prevented from disposing of it does not prevent Zakat from becoming due; because this restriction was made with his consent and choice. This includes long-term investment accounts from which withdrawals are restricted.
Summary from Ftawy's records · added here
Reviewed by El Fatwa's sharia committee.
Read the full answer on Ftawyhttps://ftawy.com/en/questions/13291
Where this answer came from
- Source platform
- Ftawy
- Original fatwa ID
- 13291
- Added here
- . This is when the answer was added to El Fatwa, not the fatwa's date.
- Text
- Summary from Ftawy's records, reviewed by El Fatwa's sharia committee.
- Read the full ruling
- Read the full answer on Ftawy