Ruling on 401K
Asalamualaikum sheikh. Can we have 401k from the company that one is working with. How should one approach this masala from Islamic point of view. Jazakallah khair Answer: ﺑﺴﻢ اﷲ اﻟﺮﺣﻤﻦ اﻟﺮﺣﯿﻢ In the name of Allah, the Most Gracious, the Most Merciful
The ruling of 401K will be based on the type of Fund/Company one is investing the money in. Hence, if the money is invested in a Sharia Compliant Fund/Company, then it would be permissible. On the other hand, if the Fund/Company is non-Sharia Compliant, then it would be impermissible.
Only Allah knows best
Written by Maulana Mohammad Ahsan Osmani Checked and approved by Mufti Mohammed Tosir Miah Darul Ifta Birmingham