Zakat on 401(k), IRA, and Retirement Accounts
How to calculate zakat on a 401(k), IRA, RRSP, or pension, including the accessible-portion approach for locked accounts and how age affects the zakatable amount.
Quick answer
Retirement accounts are zakatable, but you usually pay only on the portion you could realistically access. For a US pre-tax 401(k) or Traditional IRA, our default treats about 25% of the balance as zakatable before age 59 and a half, rising to about 75% once you can withdraw without penalty. A Roth IRA, which is already taxed and accessible, is treated as 100% zakatable.
Ruling
Zakatable, but usually on the accessible portion, not the full locked balance.
Zakatable portion
25% to 100% depending on access, age, and country
Retirement accounts such as a 401(k), IRA, RRSP, or workplace pension hold real wealth that you own, so they are zakatable in principle. The practical question is how much of the balance to count while the funds are still locked behind penalties and taxes.
Scholars offer two main approaches, and the right one for you depends on how accessible the account is and your age. Our calculator applies age and country rules automatically so you do not have to guess.
How to calculate it
- 1
Find your current balance
Use the current total value of each retirement account, including employer contributions that are vested.
- 2
Determine how accessible it is
Identify whether the account is pre-tax and locked (such as a 401k before age 59 and a half) or already taxed and accessible (such as a Roth IRA).
- 3
Apply the zakatable percentage
Apply the age and country adjusted percentage. For a US pre-tax 401k this is about 25% under access age and about 75% once accessible; a Roth IRA is 100%.
- 4
Add it to your other wealth and check nisab
Add the zakatable portion to your cash, gold, and investments, then compare the total to the nisab.
- 5
Pay 2.5%
If your total zakatable wealth meets the nisab and a lunar year has passed, pay 2.5% of the total.
Calculate it in minutes
Our free calculator applies these rules for your madhab and country automatically, with live gold and silver nisab prices.
Open the zakat calculatorKey points to know
Two mainstream views
Some scholars say pay 2.5% on the full balance every year because you own it. Others say pay only on the net amount you could actually withdraw after penalties and taxes, since the rest is not truly at your disposal. Both are defensible.
Access age changes the number
Before you can withdraw without penalty, a smaller share of the balance is treated as accessible. Once you reach the penalty free age, a larger share becomes zakatable.
Roth and ISA style accounts are fully counted
Accounts funded with after-tax money that you can access, such as a Roth IRA in the US or a Stocks and Shares ISA in the UK, are treated as 100% zakatable.
Country rules differ
A Canadian RRSP, a UK SIPP, and a US 401k each have different default percentages because their tax and withdrawal rules differ. Our calculator applies the right rule for your country.
Frequently asked questions
Do I really owe zakat on money I cannot touch yet?
Most contemporary scholars say yes, because you still own the wealth, but many allow you to pay only on the portion you could realistically access after penalties and taxes. Our default uses the accessible-portion approach so you are not paying on money you cannot reach.
How is a Roth IRA treated?
A Roth IRA is funded with money that has already been taxed and its contributions are accessible, so it is treated as 100% zakatable on its current value.
What percentage should I use for a 401(k)?
Our default treats a US pre-tax 401(k) as about 25% zakatable before age 59 and a half, and about 75% once you can withdraw without penalty. You can override this per account if your scholar advises a different figure.
Does my madhab change the retirement calculation?
The percentage is driven by age and country rather than madhab. Your madhab affects other parts of the calculation, such as jewelry and debt deductions.
Related guides
This guide is for general educational purposes and reflects the methodology used in our calculator. Rulings can vary by scholar and circumstance. For a binding ruling on your specific situation, consult a qualified scholar.