Is a retirement account, such as a 401(k), 403(b), 457, IRA or Roth, considered part of a Musi’s Jaidad?

Yes. A retirement savings account, such as a 401(k), 403(b), 457, IRA, or Roth etc. is considered part of a Musi’s Jaidad.

Upon retirement, when the Musi begins taking periodic withdrawals from the account, those withdrawals are considered income, and Hissa Amad is payable on the net income received after applicable taxes.

If the Musi elects to take a lump-sum distribution from the retirement account, Hissa Jaidad may be settled on the net amount received after taxes.

If any balance remains in the retirement account at the time of the Musi’s demise, the account is liquidated in accordance with applicable laws and plan rules. The net amount received by the estate or beneficiaries after taxes is considered Tarka, on which Hissa Jaidad is obligatory.

A Musi may also designate “Ahmadiyya Movement in Islam” as the beneficiary of 10% — or the applicable Wasiyyat rate — of the balance in the retirement account.