Is investing in 401(K) even halaal?
Question
Salaam Mufti Saahab. You recently addressed a question regarding paying zakat on 401(K) investments. Is investing in such plans even permissible, given that one has no idea into which venture the money will be invested, eg. interest paying bonds or companies dealing in haraam.
Answer
If the portfolios of investment in the 401(k) plan are Halaal, then only will it be permissible to invest in it. The ruling of Zakaat is in that context.
and Allah Ta'ala Knows Best
Mufti Ebrahim Desai
FATWA DEPT.
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- Mufti Ebrahim Desai
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