Zaki Financial Investment Zakat Calculator
Enter your assets and customize deductions for each account.
Investment accounts: individual, joint, trust, minor/custodian, estate, and business accounts. Retirement accounts: IRA, Roth IRA, SEP IRA, SIMPLE IRA, 401k, 457, 403(a), 403(b), deferred annuity, and pensions. Other accounts that can be zakatable if accessible are deferred compensation plans and stock option plans. Educational accounts (529 or ESA) and Health savings accounts (HSA) are zakatable too.
Most retirement accounts are subject to a penalty (10% in the US) if withdrawn before a certain age (59 1/2 in the US). Examples include IRAs, 401(k), 403 (b), annuities, and pensions. Educational accounts are also subject to a 10% penalty if withdrawn for reasons other than education. HSA is subject to a 20% penalty if withdrawn for reasons other than medical or health-related purposes. There may be a 10% penalty on a Roth IRA if it is withdrawn before 5 years.
Most retirement accounts are also subject to income tax upon penalty, for example, IRAs, except Roth IRAs, 401(k) s, 457 (b) s, 403 (b) s, and pensions.
If your pension is a defined plan and has no cashable value, then no zakat is due. If your pension has a cash balance, then it is zakatable.
Legend
- Retirement Accounts: means accounts funded by pre-tax money and fully taxed upon penalty at your tax bracket. They are usually subject to a penalty if withdrawn before a certain age (59.5 in the uS).
- Non-Retirement accounts: No early penalty penalty, but they are taxed on the gain at your capital gain tax rate.
- Penalty: early penalty penalty percentage.
- Tax: tax percentage due upon penalty. Retirement accounts are fully taxed upon penalty at your tax bracket.
- Fixed Asset: the fixed asset part of the stock value is not subject to zakat and can be deducted. According to Zaki Financial research and the approval of its scholar (Dr. Main Alqudah), it is 15% on average. Calculating that for every stock in your portfolio is impractical.
Non-Retirement Accounts
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Fixed Asset
Retirement Accounts
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Penalty
Tax
Fixed Asset