Safe Harbor Launches 401(k) Plan for Cannabis Industry Employers
Safe Harbor has announced the launch of the Safe Harbor Retirement Plan, a pooled employer 401(k) plan designed for state-legal cannabis businesses and related service providers.
The retirement plan comes from SHF Holdings, Inc., which operates as Safe Harbor and trades on the NASDAQ: SHFS. The company provides banking, lending and financial services to the regulated cannabis and hemp industries.
According to Safe Harbor, the plan provides access to a 401(k) investment portfolio and uses collective investment trusts intended to support participation from cannabis-related businesses within applicable legal frameworks.
Safe Harbor said many traditional retirement plan providers do not support cannabis-related businesses, creating operational uncertainty for employers and employees. The company noted that some cannabis businesses have experienced retirement plan terminations or service interruptions that, in certain cases, resulted in early withdrawal penalties or tax consequences for employees.
The company said the Safe Harbor Retirement Plan aims to reduce the risk of service disruptions while supporting long-term retirement continuity for cannabis employers and workers.
The launch expands Safe Harbor’s financial services platform for cannabis operators. The company currently offers employee banking services and workforce support through payroll and human resources operations, including its acquisition of 420 IT Solutions and partnerships with cannabis-focused payroll providers.
Safe Harbor said the retirement plan can support operators with both cannabis and non-cannabis business entities under a single plan. Companies that serve or invest in cannabis businesses may also participate.
Safe Harbor said it will serve as the first adopting member of the retirement plan.
“For years, cannabis operators have tried to offer retirement benefits to their employees while navigating uncertainty around plan stability,” says Terry Mendez, CEO of Safe Harbor. “This solution is designed to provide a more consistent path forward. It reflects the same approach we’ve taken across banking and financial services, building infrastructure that aligns with the realities of this industry and supports the people behind it.”
Safe Harbor said the retirement plan targets a range of cannabis businesses, including multi-state operators, single-state operators, cultivators, manufacturers and retailers managing employees across multiple jurisdictions.
Additional information about the retirement plan is available here: Safe Harbor Retirement Solutions 401(k) Information
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