Question
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