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Fatwa Answer
السلام عليكم
i have question about zakat on 401k and health savings account
i have 401k and health savings account with my employer they been contributing money in my 401k every year as profite share in a business and also contribute money in my health savings account every year to cover up the copay or deductible for my health insurance that i have it through my employer. But i do not contribute anything from my side all the money i have in those accounts are through my employer, do i have to discharge zakat on that money in my both contributed by my employer?
please advice as soon as possible
jazakallah
بسم اللہ الرحمن الرحیم
الجواب وباللہ التوفیق
The amount deposited by the company in employees accounts under the 401K plan, or the in the Health Savings Account, does not qualify for zakat since the saved amount is yet not in your possession. But after taking possession of that money:
a. If the amount received qualifies the threshold of Zakat (نصاب), and after one year has passed on that money, Zakat will be due on that money.
b. If you have other assets which also qualify the threshold of Zakat (نصاب), then zakat will be compulsory on those assets as well as the above mentioned savings.
فقط واللہ اعلم واتم