Zakat On Pre-tax IRA Account
Yes indeed, it’s much clearer now. I really appreciate your taking time and patience. Jazakallah!!! The only issue that I’m still not a 100% sure is related to what you mentioned about the taxe obligations. I wanted to understand it with your kind help using a simple example. Let’s assume that I received a distribution of $1000 from my IRA account. Now, from the aforementioned discussion, the zakat due on this is $100. However, I’m obligated to pay $150 towards government taxes. From your statement given above, is my understanding correct that in this particular example there’s no zakat due since my government taxes are higher than the zakat dues?