Zakat On Pre-tax IRA Account
Thank you very much for your kind response, which made some things clearer. However, I’m still a little unsure about the details. I was wondering if you would be kind enough to go over with me with a realistic example. I have $10,000 in my retirement account which is invested in the stock market and it’s current value is $9000 due to the markets being down. If I get a distribution/withdrawal of $1000 then I’ll have to pay at least 15% federal and state taxes. So my question is how much zakat is due in this case, if any, bearing in mind that the value of the investment has dropped and I’ve already paid 15% taxes on it?