401K/IRA Rollover FAQs

It depends on your situation and the choices available to you. Some might want to leave their retirement funds with the former employer due to the general investment strategy. A rollover helps you to keep the tax-deferred status and avoid early withdrawal penalties. You can also use IRA rollover to consolidate your investments. If you wish to invest in a halal manner and your employer didn’t offer that option, then rolling over will offer a broader range of investment options according to Islamic values.

401K/403B rollover is a great tool to have control over your investments. If you seek to invest in a halal manner, it offers more choices which your former employer might not offer. By rolling over your employer sponsored assets into a comparable (tax benefits and feature wise) retirement account, you can ensure that you continue to be invested in the market even after you leave an employer. You must consider tax and fees (if applicable) related to your investment and consult with a tax adviser before choosing the type of account to rollover into.

The account you choose will impact the tax and fees you pay. It also depends on how long you wait after the distribution before you deposit your funds into another retirement account. A delay more than 60 days might cause federal penalties. If your assets are pretax or after tax, you may want to rollover into an account that offers the same or similar tax benefits.

Yes. Iman Fund invests according to Islamic ethical principles that are beneficial for the society as a whole and not just for Muslims. Anyone can invest in it regardless of faith or religion. If you believe in living an ethical lifestyle, then a halal investment vehicle like Iman Fund may be a great choice for you and your family.

Iman Fund is an open-ended fund, which enables quick and hassle-free withdrawal of funds. It usually takes one to two business days to process withdrawal requests. However, please be aware that depending upon the type of account you have chosen, there may be federal penalties and taxes for early withdrawal from certain accounts such as different types of retirement accounts.

  • There is no fee to open an account however, you would need to make an initial investment/deposit.
  • If you invest directly with Iman Fund, then the minimum deposit is $250 for a non-retirement account, and $100 for IRA accounts. This deposit is your money and stays in your account even if you don’t add more. Of course, this amount will go up or down based on the Fund’s performance over time. It is recommended though to add more on a monthly basis.
  • If you invest through a broker firm, for example, Fidelity, they might have different deposit and fee structures. Please make sure you check with your broker or financial advisor regarding any fees and restrictions before you invest.

As a regulated fund, we are obliged to gather specific information about our clients to comply with Know Your Customer requirements. Therefore, to open account at Iman Fund, you need to submit the following documents:

  • Completed application form.
  • Proof of identity. (Identity card with photo, Passport, Driving License, Voter ID card).
  • Proof of address, such as utility bills (phone, electricity, gas, or others with your name and address on them that are less than three months old), recent bank statements, ration card, registered lease agreement, or others.
  • After receiving the complete documents, we will process your account opening application within five business days.

On one hand, holding your savings in a bank account generates interest which is forbidden according to Islamic principles. Those interest payments may not exceed 1 or 2 percentage points in current market conditions, so it may not be a very good growth vehicle for your money.

Instead, if you invest those savings through a halal investment vehicle of your choice such as Iman Mutual Fund, you may benefit from better potential growth on your savings. You can also be rest assured that your capital is being invested ethically, is actively managed by a dedicated fund manager, and is going to fund companies we believe offer high growth potential.

 The seasoned staff at Iman Fund may offer clients tailored advice that helps them achieve their financial objective. This includes:

  • Advice about the tax implications* of their investments. This usually helps our clients achieve tax efficiency.
  • Educational services to individuals to help them understand all the ins and outs of Halal investing, and how it may help stabilize their return on investment.

* Any tax or legal information provided isn’t an exhaustive interpretation of some of the current income tax regulations. Investors must consult their tax advisor or legal counsel for advice and information concerning their particular situation. Neither the Fund nor any of its representatives may give legal or tax advice.