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Retirement Zakat Calculator

Calculate Zakat on your 401(k), IRA, or UK Pension — for Muslims in the USA and UK. Includes purification and deferred payment options.

verified FCNA & AMJA Compliant public For US & UK Muslims
info Zakat on retirement funds is an annual obligation. You may pay from other savings, or track and pay later upon withdrawal.
account_balance Step 1 — Select Account Type
payments Step 2 — Account Balance
Enter your total vested account balance
Amount you would forfeit if you resigned today
For "Net Withdrawable" method
percent Step 3 — Zakatable Portion (Optional)
% of fund in cash/inventory. S&P 500 ≈ 24.8%, Sharia-compliant ≈ 8.24% [citation:8]
person Step 4 — Your Other Zakatable Assets
Cash, gold, silver, stocks, savings, etc. (exclude personal home)
Two Scholarly Approaches

How to Calculate Zakat on Retirement Funds

Scholars differ on Zakat for restricted retirement accounts. Both views are valid — choose one and apply it consistently.

Method Calculation Basis Best For Scholarly Support
1. Full Value (Gross) 2.5% on entire vested balance Simpler calculation FCNA, majority view [citation:8]
2. Net Withdrawable 2.5% on balance minus tax & penalty Under 59.5, AMJA position AMJA Fatwa 84085 [citation:18]
3. Zakatable Portion 2.5% on (Balance × Zakatable %) Long-term investors FCNA (stocks method) [citation:8]
4. On Withdrawal Track annual amounts, pay upon retirement Practical for restricted funds Permissible with careful tracking [citation:9]
Retirement & Zakat

What You Need to Know

account_balance

US 401(k) & IRA

Zakat is due annually on vested balance. Under 59.5, AMJA allows deducting 10% penalty + estimated taxes [citation:18].

public

UK Pensions

Zakat applies to defined contribution schemes (SIPP, workplace DC, personal). Not on defined benefit or state pensions [citation:9].

schedule

Deferred Payment

You may track Zakat annually and pay upon retirement. Keep records. This is permissible due to access restrictions [citation:1][citation:9].

Retirement Questions

Frequently Asked Questions

Yes, according to the Fiqh Council of North America (FCNA), Zakat on 401(k) and IRA accounts is an annual obligation, whether self-financed or employer-sponsored. The funds are legally yours and grow for your benefit [citation:8].
The AMJA (Assembly of Muslim Jurists of America) position allows deducting estimated income tax and the 10% early withdrawal penalty (if under 59.5) from the balance before applying 2.5%. This is called the "Net Withdrawable" method [citation:18].
Zakat applies to defined contribution schemes: Personal Pension Plans, Group Personal Pensions, SIPPs, Stakeholder Pensions, and Additional Voluntary Contributions. Defined benefit schemes (final salary, CARE) and State Pensions are exempt [citation:9].
You have two options: (1) Pay Zakat from other liquid savings annually, or (2) Keep a careful record of Zakat owed each year and pay it upon retirement when you access the funds. Delaying due to legal access restrictions is considered a valid excuse [citation:1][citation:9].
If you treat your retirement account as a long-term investment, you calculate Zakat only on the portion held in cash, receivables, and inventory by the underlying businesses. For S&P 500 (VOO), this is about 24.8%; for Sharia-compliant S&P (SPUS), about 8.24% [citation:8].
Yes. Roth IRA funds are still your wealth and are Zakatable. The difference is that withdrawals are tax-free, so your net withdrawable amount may be higher than a Traditional IRA [citation:8].
If your account earns interest from non-compliant sources, that specific portion is not lawful property. You should purify it by giving it away to charity (not counted as Zakat). Zakat is only calculated on the halal portion of your retirement fund [citation:1].

Fulfill Your Zakat on Retirement Funds

Your Zakat purifies your wealth and helps families in need. 100% of your Zakat reaches eligible recipients in Bhara Kahu, Islamabad.

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