Halal 401k


I am currently employed for a company that has a 10% 401k match and allows us to customize our investments through fidelity with a choice of over 200 funds, bonds and more. I searched nearly all of the funds and found 5 that had ~5% of the fund containing holdings from non compliant companies. With over 40-70% complaint and some 20-30% questionable due to media streaming services like Apple, amazon etc. if I were to choose to divide my investments in these funds and purify the earnings would this be deemed halal? Or should I skip out on the 401k?

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Assalaamu Alykum Leena, Welcome to the Zoya Community great to have you with us.

Below is an answer from @saad on a thread where someone else asked a very similar question. The discussion I’ve linked is a pretty good resource.

Salam Leena!
We are in the same position as well. Though I haven’t been able to find that many options with our fidelity 401k as you have. Are you doing this through the brokerage link option? I was wondering if the SPUS or similar would be available through brokerage link.

Also would you mind sharing the ETFs or funds that you found with 5% or less non-shariah compliant? I haven’t found those yet and I think that might be the least bad option for our situation with regular purification.

Brokerage Link does have SPUS as well as HLAL and Amana mutual funds. You can’t automatically invest in the ETFs last I checked, only mutual funds that are bought and sold daily at market close, so I have automatic investments into the Amana mutual funds and have sold some to buy those ETFs to diversify.

If you invest in Amana fund then you should be able to buy into the lower fee institutional shares (AMIGX,AMINX) with automatic investments. Otherwise manual purchases of those incur $50 fee (sales are no fee).

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Okay so I spoke to a fidelity financial advisor and she said we can open a brokerage account tied to our 401k. I did this and my employer contributions + mine go in here as cash and I choose to save the money or make automated investments and one of them can be AMNA fund.


Thanks for sharing! I’m sure this will help so many people