We are often asked if Muslim retirement savers can choose beneficiaries outside of Islamic inheritance rules. After all, naming beneficiaries on IRAs and 401(k)s a basic part of keeping accounts in order. Generally, an owner of an employer retirement plan or pension account preselects the beneficiaries of his or her retirement account, which means that when the owner dies, the retirement benefit automatically passes to the preselected beneficiaries. For this reason, the retirement account is not distributed according to the person’s Islamic will, which can leave some observant Muslims wondering if it’s okay to designate beneficiaries at all. Prominent scholars,

Most U.S. taxpayers “completely agree” (68%) or “mostly agree” (26%) that paying their fair share of taxes is a civic duty.1 However, no one wants to pay more than his or her fair share. To help avoid doing so, consider addressing some important priorities before you begin filling out your tax forms. Here are some steps that might help reduce stress when preparing your return. Create an online account with the IRS. In addition to making it easier to review important tax information from previous years, an online IRS account provides a secure platform for reviewing the total amount you owe, making

Have you ever wondered about the authenticity of a halal investment? Companies throw around terms like “halal” or “Shariah-compliant” often without defining them. Sometimes, your financial advisor might be claiming adherence to Islamic finance principles without really understanding what they mean–maybe unintentionally, maybe not. This is especially the case when a financial firm offering “halal” investments also sells conventional investments, too.  These types of advisors may be guilty of what we call “halalwashing,” which is when a firm spends time and money making false or misleading claims about the compliance of a product or service. It’s a riff on the

Many IRA and retirement plan limits are indexed for inflation each year. Although the amount you can contribute to IRAs remains the same in 2022, other key numbers have increased, including how much you can contribute to a work-based retirement plan and the phaseout thresholds for IRA deductibility and Roth contributions. How Much Can You Save in an IRA? The maximum amount you can contribute to a traditional IRA or a Roth IRA in 2022 remains $6,000 (or 100% of your earned income, if less). The maximum catch-up contribution for those age 50 or older remains $1,000. You can contribute