Is Zakat Obligatory on IRA/Retirement Accounts That You Don’t Have Access to Until You Reach a Specific Age

CategoriesZakah [234]

Fatwa ID: 04321

Answered by: Imam Abdul-Malik Sheikh




Asalaamu Alaikum. Quick question – I know I asked before but need to confirm:: IRA/retirement accounts that you don’t have access to until you reach a specific age- need to be counted towards zakat or not?



بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

In the name of Allah, the Most Gracious, the Most Merciful




Zakat becomes obligatory when the following conditions are met in a person:

1- Being in a state of Islam
2- Maturity (not obligatory on children)
3- Sanity
4- Possession of Nisāb
5- And the Nisāb being in one’s Poseidon for a full lunar year

In addition to the above, the following conditions need to be met with regards to the wealth:

1 – Ownership. Zakat is not obligatory on wealth on does not own
2- Ability to use the wealth
3- Growth
4- Excess over basic needs

My understanding is that the IRA is a type of investment plan in which there is growth and a person with such a plan has legal ownership of the saving even though he is unable to withdraw the money before a certain time without incurring a financial penalty. Therefore, Zakat will be due every year as long as the total amount meets the Nisab threshold.

Bada’i al-Sana’i, Vol.2 p.10, Dar al-Kutub al-Ilmiyyah



Only Allah knows best

Written by Imam Abdul-Malik Sheikh

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham



About the author