New Cannabis 401(k) Plan levels the playing field for cannabis companies
Industry experts team up to solve a critical employee benefits problem for cannabis companies
Seattle, WA / March 18, 2019: For the first time, cannabis companies across the country can add a 401(k) Plan to their employee benefits package thanks to the efforts of a group of financial, legal and retirement industry veterans including Seattle-based Leading Retirement Solutions (LRS).
“Attracting and retaining quality employees has become extremely competitive for the booming cannabis industry,” said Kirsten Curry, CEO of LRS. “That’s because employees expect attractive benefits as part of their overall compensation plan and a 401(k) Plan is one of the most requested employee benefits. It’s also one of the most cost-effective employee benefits at a general cost of one-quarter of what a company pays for medical benefits.”
However, up until recently, it has not been possible for companies in the cannabis industry to offer a 40(k) Plan to their employees. Curry says this has made it challenging for them to attract and retain employees in a competitive job market. One of the cannabis companies with whom the team is working, however, recognizes that it could perhaps lower a per hour employee wage in favor of an annual generous contribution to that employee, which the Cannabis 401(k) Plan allows. The company tells the team that its employees really want a 401(k) plan to allow them to save for retirement, just like what their counterparts in non-cannabis companies have.
Developed by a group of financial, legal and retirement industry veterans who already serve the cannabis industry with tax and employee benefits solutions, the new Cannabis 401(k) plan levels the playing field in terms of compensation and perks. The Cannabis 401(k) Plan is available across the country and allows employees and executives to save for retirement on a tax-beneficial basis.
Curry says the plan is a traditional investment platform that delivers investment returns and offers competitive service and pricing. “The Cannabis 401(k) Plan allows the appropriate Internal Revenue Code 280E and COGS adjustments to which the cannabis companies are entitled.”
With the solution, the Cannabis 401(k) Trustees accept employee and company contributions and direct investments for each cannabis firm. Cannabis companies interested in adding a 401(k) Plan to their workplace solutions and benefit program should email firstname.lastname@example.org
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Leading Retirement Solutions is a full-service retirement plan administrator offering employee benefits and workforce management solutions for employers, employees, investors and trusted advisors. We deliver and manage business solutions that minimize taxation, manage risk, ensure regulatory compliance and build and protect your wealth. Headquartered in Seattle, WA, we support clients in all 50 states, with team members in every time zone covering a wide range of industries.