The 401(k) Offering for the Cannabis Industry

The opportunity to participate in a retirement plan has traditionally been unavailable to the cannabis industry.Until now.

Valentine 401(k) has championed 401(k) solutions for the cannabis industry, offering all cannabis-related businesses the opportunity to:

1

Significantly Save on Taxes

401(k) contributions are tax-free for the participant and generally tax-deductible for the employer.


2

Attract and Retain Top Talent

Providing a valuable employee benefit like a 401(k) plan sets you apart from the competition.


With experience serving cannabis clients and a broad network of connections in the industry, Valentine 401(k) is positioned better than any other investment advisory firm to serve your cannabis company.

Frequently Asked Questions:

A 401(k) plan avails business owners, and employees, of the opportunity to sock away substantial earnings tax-free, while providing a valuable and affordable benefit to employees

Per the 2019 contribution limits, a 401(k) allows anyone to have up to $56,000/year contributed tax-free. Those above the age of 49, are allowed contributions up to $62,000/year. Add a Cash Balance Plan and that number increases to upwards of $390,000/year!

The answer likely depends on your specific company structure. Generally speaking, if you can include your employees’ compensation in COGS, you should be able to include 401(k) expenses and employer contributions in COGS as well. You’ll have to ask your CPA or a tax expert for guidance specific to your situation. Regardless, your personal contributions will always have a tax benefit.
There is nothing that prohibits a cannabis company from having a 401(k) plan. The only hard part is finding the service providers willing to work with the industry – which we have already done for you.
All you need is a bank account that allows you to make payroll contributions into the plan on a cash-free basis. Any business can start a 401(k) plan, but contributions cannot be made with cash.

Contact us to schedule a call. We will get an understanding of your company and your goals and point you to the 401(k) solution that best fits your situation.

While the timeline can vary significantly depending on complexity and responsiveness, we can generally start a 401(k) plan in 30-60 days.
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Follow what we are doing in the Cannabis Industry:

Read our article in Marijuana Venture Magazine:
“The 420-Friendly 401(k) Plan”

Evgen YurevichThe 401(k) Offering for the Cannabis Industry