An Individual Retirement Account (IRA) is a tax-advantaged retirement savings account. For more information, visit the IRS' website.

A Roth IRA offers tax-free growth and qualified distributions. You pay taxes on contributions now, but withdrawals in retirement are tax-free. For more information, visit the IRS' website.

What is the difference between a Traditional and a Roth IRA?

The primary difference between a Traditional IRA and a Roth IRA is the type of tax benefit each offers. With a Roth IRA, you get no deduction for contributions, but if you follow all the rules, your investment earnings will be distributed tax- and penalty-free in retirement. Traditional IRAs can provide a deduction for contributions and you may defer taxes on investment earnings until funds are withdrawn, typically in retirement.

Are there any fees for opening an IRA with Wahed Invest?

Fees apply. Please see the Wrap fee brochure for details.

Once I open my IRA with Wahed Invest, how should I invest the funds within my account?

Wahed makes halal investing simple. Once you have completed the questionnaire, we'll provide you with an optimal strategy based on the answers you submitted. After you fund your account we'll invest your money for you according to your recommended portfolio.

What is my Modified Adjusted Gross Income (MAGI)?

For information about Modified Adjusted Gross Income (MAGI), please visit the IRS' Website.

A rollover is the process of moving your retirement savings from your retirement plan at work (401(k), profit-sharing plan, etc.) into an Individual Retirement Account (IRA) with Wahed Invest. Rolling over to an IRA allows you to keep your savings tax-deferred.

How do I rollover an IRA?

To rollover an IRA, contact support@wahed.com for assistance.

Can I roll my plan at work over to a Roth IRA?

If your plan at work is a Roth 401(k) or Roth 403(b), then you can roll your Roth money directly into a Roth IRA with Wahed. For more information, visit the IRS' website.

Can I combine my rollover and annual contributions into one IRA?

Yes, you can combine rollovers and contributions in the same IRA. However, Traditional IRA dollars and Roth IRA dollars must be kept in separate accounts.

Can I consolidate all my Traditional IRA accounts at Wahed?

Yes, this is possible in the new app for a new user. However for existing clients who have Traditional IRA accounts with multiple emails, this is not possible.

Can I convert from a Traditional to a Roth IRA (or vice versa) at Wahed?

No. As of now, we request you to convert it at your current institution before you initiate the transfer.

What assets can I transfer to Wahed?

The only form of asset transfer that is acceptable is cash only.

Do I need to report a rollover on my tax return?

Yes. You will receive two tax forms — an IRS Form 1099R, reporting that you took a distribution from your former employer's plan, and an IRS Form 5498, reporting that you made a rollover contribution to your IRA with Wahed Invest. Even if no portion of your rollover is taxable, you must report it on your tax return.

Will I owe taxes on my rollover?

Typically, you will not owe taxes on your rollover if you roll over your money directly from your company plan into an IRA with Wahed Invest. This means that your company plan makes the check payable to your IRA's custodian, and that check is deposited to your IRA. Consult your financial advisor before implementing any changes as your situation may vary.

What is the minimum required to open an IRA with Wahed Invest?

The minimum required to open an IRA is only $100.

Can I contribute to both a Traditional and a Roth IRA in the same year?

For information about contributing to both types of IRAs, please visit the IRS' Website.

Can I contribute to an IRA if I'm already contributing to a retirement plan at work?

For information about contributing to an IRA while participating in a workplace retirement plan, please visit the IRS' Website.

Can I take a loan from my IRA?

No, loans are not permitted from IRAs.

What are the taxes and penalties for an early distribution from my IRA?

For information about taxes and penalties for early distributions, please visit the IRS' Website.

What are catch-up contributions?

Once you reach age 50, in a particular tax year, contribution limits on IRAs and employer-sponsored retirement accounts increase, allowing you to 'catch up' on your savings by contributing an amount over the annual contribution limit. In 2021 and 2022, you can contribute an additional $1,000 catch-up contribution to your IRA, making your maximum contribution amount up to $7,000.

How to add a beneficiary?

Please note that you can only add a beneficiary to a retirement account. This can be done from the account details section in the app.

A Simplified Employee Pension (SEP) IRA provides business owners with a simplified method to contribute toward their employees' retirement as well as their own retirement savings. Contributions are made to an Individual Retirement Account (IRA) set up for each plan participant (a SEP-IRA). A SEP-IRA account is a Traditional IRA and follows the same investment, distribution, and rollover rules as Traditional IRAs. Employers and employees can make both SEP IRA and Traditional IRA contributions to the same account.

What is an inherited IRA?

An inherited IRA allows beneficiaries a way to keep the funds growing tax-advantaged in an IRA while taking distributions. The account titling will always refer to the deceased IRA owner, with you listed as the beneficiary. Since you aren't the owner, you may not make contributions and cannot execute a 60-day rollover to this account. The benefit of this arrangement is that you only need to take annual required minimum distributions (RMDs) based on your life expectancy and are taxed on that amount; this is often referred to as the stretch IRA strategy.

What is a Roth conversion?

For information about Roth conversions, please visit the IRS' website.

What are some possible benefits of consolidating IRAs with Wahed Invest?

Consolidating your IRAs with Wahed Invest offers many potential benefits, including one monthly statement, required minimum distribution (RMD) simplification, potentially fewer fees, and ease in managing your investment strategy. To to learn more about how to transfer or consolidate IRA assets, email us or call us at +1-855-976-4747

Can I take the money out of my retirement plan at work and then decide what to do?

You can, but it's a good idea to consider the impacts of each option before making a decision to take money out of the plan. When you take money out of the plan in a check payable directly to you, 20% of the original balance will be withheld for federal income taxes before you get the check, so you won't have the full amount to roll over.

What if I need to use some of the money from my 401(k)?

When rolling over a 401(k), you may be able to take a portion of your money out of your plan at work and leave the rest in, but not all plans allow this. If you are required to take all of your money out of the plan, you can roll over to an IRA with Wahed Invest, then take the portion that you need out of the IRA.

What happens if I have a loan from my retirement plan at work?

Check with your company to find out if the plan will allow you to continue making payments after you leave the company, or whether you are required to repay the balance of your loan before you can roll over the remainder to Wahed Invest.

When can I take money out of my retirement plan at work?

You may be able to take money out of your retirement plan at work while you still work for the company. But typically, you are only able to take money out when you reach the normal retirement age of 59 1/2, leave the company, or become disabled, or if your employer terminates the plan. Check with your company to find out when you can take money out of your plan.

What is a mandatory distribution?

For information about mandatory distributions, please see IRS Publication 590.

Traditional · Roth · SEP $100 minimum 401(k) rollovers

Retire without compromising your faith

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The retirement reality check

Retirement confidence is falling

The Employee Benefit Research Institute reported a drop in retirement confidence among workers and retirees unseen since 2018*. Here's what's driving the uncertainty.

Inflation

With a projected inflation rate of 2.4% for 2026*, your retirement fund is shrinking each year that it sits idle.

Retirement costs

Basic living expenses such as food, healthcare and housing are rising, putting an extra layer of stress on your investments.

Limited halal options

Not having enough tucked away in Shariah-compliant investments can easily turn the retirement of your dreams into a nightmare.

Account types

Our IRAs are here to bridge the gap

Each account offers a specific tax benefit, in a way that stays fully compliant with your faith. Select the one that best fits your needs.

Traditional IRA

Grow your investments tax-deferred until you withdraw your funds during retirement.

Roth IRA

Pay taxes now on your contributions and, in return, enjoy tax-free growth and qualified withdrawals later.

SEP IRA

Unlock the same tax benefits as a Traditional IRA, designed for small business owners and the self-employed.

For more information on IRA accounts please visit IRS.gov. Consult with your tax or financial advisor before implementing any plan changes, as your situation may vary. The term "halal" denotes that something is permitted and follows Islamic law.

Transfer your IRA or roll over your 401(k)

For those looking to transfer an existing IRA to a halal portfolio, or roll over a 401(k) into a halal IRA, and make the most of their retirement savings plan.

Start a rollover

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Tell us where your account sits today.

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Our team coordinates the transfer end to end.

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Retirement calculator

See when you can retire

Model your savings, taxes and withdrawals, see scenarios of when you can retire and how long your money will last.

Your inputs

Current age

Target retirement age

Starting balance today

Yearly contribution amount

Annual expenses at retirement

Help me calculate

Note: Expenses are entered in today’s dollars and will be automatically adjusted for inflation to your retirement age.

Account type

Roth IRA Traditional IRA Taxable Account

Help me choose

Investment portfolio

Recommended Glidepathvaries

Aggressive8.5% Mod. Aggressive7.5% Moderate6.5% Mod. Conservative5.5%

Other Assumptions

Your results

Total contributions

Total investment returns

Monthly net spending at

Monthly gross withdrawal at

Estimated monthly taxes at start

Total taxes paid

Balance at age 100

Savings last until

Portfolio Return Methodology:

Returns are based on forward-looking Capital Market Assumptions (CMAs) — consensus estimates from Vanguard, J.P. Morgan, BlackRock, Morningstar, and Schwab. Rates reflect weighted equity/bond blends (e.g., Aggressive ≈ 90/10 at 8.5%; Moderate ≈ 50/50 at 6.5%) and are rounded conservatively. They are not based on any single fund’s past performance and do not represent a real investment as rates of return vary over time.

Inflation Rate:

2.78% annually (based on 20-year CPI-U average)

Required Minimum Distributions (RMDs):

RMDs begin at age 73 (SECURE Act 2.0)
Calculated using IRS Uniform Lifetime Table
RMD = Account Balance ÷ Distribution Period (based on age)
Example: At age 73, distribution period is 26.5 years
Example: At age 80, distribution period is 20.2 years
If annual spending exceeds RMD, the higher amount is withdrawn

Important Information

This calculator provides estimates for illustrative purposes only and should not be considered financial, tax, or investment advice.

All investments carry a degree of risk and past performance is not a guarantee of future results. This is for illustrative purposes only and does not represent the return on any particular investment. Rates of return will vary significantly over time and loss of principal is possible.

Assumptions and limitations:

Returns are hypothetical based on forward-looking Capital Market Assumptions (CMAs) derived from consensus forecasts by Vanguard, J.P. Morgan, BlackRock, Morningstar, and Schwab — they are not guaranteed
The projections or other information generated by the Retirement Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results. Results may vary with each use and over time.
Intended only to provide a general guideline for planning purposes
Portfolio return rates reflect weighted equity/bond blends at each risk level and are deliberately rounded conservatively
Tax calculations are simplified and assume Married Filing Jointly status
Inflation projection uses a 20-year CPI average and may not reflect future rates
Social Security, pensions, and other income sources are not included
State and local taxes are not considered
Healthcare costs and long-term care expenses may require additional planning
The age-based glidepath is simplified to four brackets; actual target-date funds use a continuous glide

Wahed does not provide legal or tax advice. Consult your own tax advisor for information regarding your own situation.

About our portfolios

Your retirement savings are invested in the same globally diversified, Shariah-compliant portfolios that power everything we do.

Diverse, low-fee portfolios

Invest in globally diversified portfolios personalised to your stage of life, all screened for Shariah compliance.

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Consistently grow your retirement fund without lifting a finger by setting up automatic transfers and quarterly rebalancing.

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Our Shari'ah Supervisory Board screens every investment, fuelling our mission for a riba-free financial future.

Get started in 4 simple steps

Select your risk tolerance based on your life stage

Select your retirement goal

Fund your account

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Frequently asked questions

What is an IRA?

An Individual Retirement Account (IRA) is a savings account designed to help you save for retirement with tax advantages. The two most common types are Traditional and Roth IRAs.

What is a Roth IRA?

With a Roth IRA you contribute after-tax dollars. If you satisfy the requirements, qualified distributions in retirement are tax-free. Contributions to a Roth IRA are not tax deductible.

What is a Traditional IRA?

Contributions to a Traditional IRA may be tax deductible depending on your income and workplace plan. Your investments grow tax-deferred and you pay income tax on withdrawals during retirement.

Can I roll over my 401(k)?

Yes. If you have an existing 401(k) or IRA elsewhere, you can roll it over into a Wahed halal IRA so your retirement savings are invested in line with your values.

When can I withdraw my money?

Withdrawals before age 59½ are generally considered early distributions and may be subject to an additional 10% tax unless an exception applies. Consult a tax professional about your situation.

How much does it cost?

Retirement accounts are included in Wahed's transparent wrap fee at no extra cost, with a $100 account minimum to get started.

Information provided by Wahed Invest is for educational purposes only and is not investment or tax advice. For additional information please refer to the IRS' website; for help with any questions, please consult a tax professional.

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