How To Pay Zakat On 401k?
I think it needs to be mentioned that taxes paid on withdrawal offset the Zakat obligation. Normally in the US there is state and federal taxes on all retirement withdrawal and the percentage of taxes are much higher than 10‰. It is a complicated topic. In California there is income tax on retirement income that will offset Zakat. On the other hand in Texas, there is no income tax, but government collects money by imposing much higher property tax than California. Now the property tax or perhaps sales tax is not an offset to zakat, just the income tax can be offset. Please correct me if I am wrong.