Assalam O Allikum,
I hope this letter finds you in the best of health and iman.
My question is on the zakat for 401k plan.
Assuming I have $100000 in my 401k plan and I am 50 years old.
So, this amount is over nisab but i have resticted access to these funds till I am 60 years old.
Restricted access meaning that if i try to use these funds via withdrawl, i will play penalty and taxes.
How do i calcaulate zakat on this amount ($100000)?
Shall i deduct penalty and taxes for calculating zakat? or pay zakat on $100000.
بسم اللہ الرحمن الرحیم
الجواب وباللہ التوفیق
In this case, unless you are taxed or fined, Zakat will be obligatory on the full amount in your account.
When taxes or fines become applicable upon you, we suggest asking again at that instant.
فقط واللہ اعلم بالصواب