What Is the Fatwa on the 401k Insurance

CategoriesTrade, Business & All Things Money [490]

Fatwa ID: 04405

Answered by: Maulana Mohammad Ahsan Osmani

 

Question

 

Assalamu Alaikum, Sheikh. Can we have 401,000 from the company that one is working with?

How should one approach this masala from an Islamic point of view?

 

 

بِسْمِ اللهِ الرَّحْمنِ الرَّحِيْم

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

 

Answer:

 

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

 

 

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