Is khums due on the money deposited into an employee savings account, such as a 401-K or IRA account? The savings in these accounts increase over time as a small percentage is taken from the employee’s salary and the employer adds a similar percentage to it. Both are then invested, and the entire savings are given to the employee upon retirement.
Khums is immediately due on the percentage that is contributed from the employee’s salary. On the other hand, the amount contributed by the employer and the investment profits are not subject to khums until received by the employee and they have exceeded the expenses for the year of receipt.