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Enrolling in 401k

Answered as per Hanafi Fiqh by ShariahBoard.org

Assalamualaikum,

I have recently got a new job.The company offered me 401k benefits and I have enrolled in it. According to the plan if I put 6% of the income the company will match 75%.The 401k for this company is maintained by vanguard .And vanguard invested it in Vanguard wellington fund admiral shares.This is all the information I have got.

I am really new to all this, and confused if this is halal or haram.Could you please guide me in right direction.

JazakAllah Khair

 

الجواب وباللہ التوفیق

We don’t know the details of this account and the points you have mentioned are not clear, therefore, we cannot advise you the Shar’i ruling in this regard, and till you were aware of the Shar’i ruling about it you should not have opened this account. But as you have got it opened you should relinquish it if possible. Please find out more details about this account and ask the question again, such as: What is the status of the amount taken from you? Whether it is optional or mandatory? What is the use of this amount / where is it spent? Whether you can take it or not? What are the plans of company about it? And in lieu of your amount, what is the status of the 75% company share and when is it given?

والسلام

This answer was collected from Shariahboard.org. It was established under the supervision of the eminent faqih of our era, Hazrat Shah Mufti Mohammed Navalur Rahman damat barakatuhum.

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