Question
401(k) is a popular financial investment practiced in the United States. It involves taking some of your money and putting into an account, and for every amount put into it, your employer puts in the same amount. You are not supposed to use the money until retirement, although you may borrow from it with conditions. It is an incentive some companies use to keep employees around. Is this scheme permissible?
Answer
This scheme is not permissible. It is a Riba (interest) scheme. When the scheme matures at the time of retirement, then only the amount you had invested belongs to you. The excess is haraam interest which must compulsorily be given to the poor without the intention of gaining thawaab (reward).
- Source
- themajlis.co.za
- Published in
- The Majlis Vol 27 No 08
- PDF page
- 11
Verbatim verified against the source PDF
Appears under HASAD-ENVY. This heading is the nearest headline at or before the page and is approximate. Do not cite it alone.