Zakat on RRSP and RESP Accounts
Channel: Hacene Chebbani
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Salam aleikum wa rahmatullah wa barakato. hamdulillahi rabbil Alameen wa salatu salam, ala Shafi, mousseline, Sayidina Muhammad wa ala alihi wa sahbihi. Germaine, the brothers and sisters in this halacha we will talk about zakat do we have to pay zakat on RSP accounts or any other pension plan?
Now, this is a cat, yes, we need to pay the cat on this account. But we need to know two things, there are two steps that we need to look at them. The first step is you need to know if you have access valid access to this account to this money, are you allowed to withdraw your money? Are you allowed to use it?
Even if you apply for emergency, you tell them I have an emergency and I need my money if they allow you to use this money to withdraw this money or not. So this is the first thing this is the first step you need to know do you have this access or not? If we tell you have no access whatsoever, until you reach the age of 65. Or until we leave the company, then don't worry about security. You don't have to pay the cat on these accounts. But if you have access, whether it's an easy access, you withdraw money at any time, or you have to apply for emergency and then they allow you to use this money or withdrawal from this account, then this is a valid access, and you have to pay the
cat. Now we go to the second step when in the case, you are supposed to pay cash. The second step you need to know how much the government supposedly you're going to withdrew the whole amount from your account how much the government will take away from your money. How much the government will charge you in the form of taxes. Let's say the government will take away from you will charge you around 20%. And as taxes or penalties. They you don't have to pay zakat on this percentage which is 20%. That's not your money. It belongs to the government. You don't have to pay zakat on it. You pay zakat only on the rest, which is 80%. And I guess this is very clear, right? Just two steps. Two
points. Do you have valid access or not fair or valid access you need to pay second? After you have a valid access? You need to know how much the government will take away from you or charge you and then you don't worry about that money. That amount of money. Don't base account on it basic out on the rest which is 80% or 70%. It depends. Now this is this is for our RSPs account, Any registered retirement saving plan or any other pension plan when it comes to the saving plans of our children, our E SP Registered Education Savings Plan here yes, do we need to pay zakat on behalf of our children? Yes, we need to pay zakat on behalf of our children.
But we need to pay attention to something we don't have to pay sick out on the money any money coming from the government. Why? Because the ownership of our children on this money is not well established. Why? Why why is not established, because if you close this account before they reach the age of 18, the government will take back their money, they will not leave this money with you. So they are in ownership on this money is not well established. They don't have to pay a cat on it. So you have to wait for your contributions as a parent as a father or a mother how much you are you deposited in this account for your children. If your contributions the family contributions reach
the level of the nisab which is 5000 Canadian dollars. Then here after the passing of one year, you have to pay zakat we have to pay zakat on this money. Of course you paid from your pocket as a father on behalf of your children. As a donation to your children you paid from your pocket beetelite Allah until your children reached the age of 18 and then they are free. They are supposed to pay the socket by themselves. They will become responsible in front of Allah subhanaw taala and they have to deal with it themselves. I think this is a clear it's very simple. This Allah subhanaw taala and you will feel canaliculi for you when you have to hire Elena and we're gonna do what it is
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