Make the Most of Cannabis Retirement Benefits with a 401k Plan

An MEP 401k stands for a Multi-Employer Plan. This is a plan that is designed to encourage businesses to offer a retirement benefit without having to carry the burden of all the administrative tasks that come with offering a retirement benefit. This plan is the most common employer-sponsored defined contribution plan nationwide.

At Greenleaf Business Solutions, we offer 2 different options – the Closed and the Open plan. While the Closed Plan brings straightforward solutions, the Open Plan is flexible and fully customizable depending on your business needs and goals. We can perform an initial analysis and then offer the most appropriate solution for your business.

If you’re interested in a plan that doesn’t require employers to pay to enroll, you may be interested in the Calsavers plan that’s also appropriate for weed businesses.

With our various MEP offerings, our clients can have the freedom to create a custom structure for their retirement. They can also choose to offer our Closed MEP which allows companies to not be overwhelmed with customizing their retirement plan. We have already gone through that for them, having vetted some of the best funds for their employees’ various retirement goals.

Taking part in an MEP has numerous advantages for all parties involved. From the employers’ perspective, the number one perk may be that it takes the administrative and compliance burden that a company would have to handle so that a retirement benefit can be offered. Since Greenleaf is the plan sponsor, we handle all of the compliance, auditing, filing, and 5500 forms for our participating clients.

There is no requirement to establish a MEP and get the necessary benefits of a weed 401k plan. If you have just one employee interested in the weed retirement benefits, you as the employer are eligible to offer this to them. We can walk you through the process to help you understand why our MEP 401k service can benefit not only your employees but also your business in the long run.

A MEP is a Multi-Employer Plan while a PEP is a Pooled Employer Plan. A multiple employer plan allows each company to be separate whereas a PEP forces each participating company into one. MEP also allows a collection of individual companies to have the freedom of choosing various fund lineups. A PEP is a single plan for all companies so flexibility in offerings can be limited.

Greenleaf Business Solutions is the sponsor to these various MEP 401k offerings. This is the most attractive feature of this integrated solution: we do not have our clients take on administrative burdens. Instead, we organize and run each MAP on their behalf, safeguarding them against any potential issues and eventualities that may arise. We also sponsor Calsavers cannabis plans, which many clients have found to be the right match for their business so far.

CalSavers Retirements Savings Program, also known as CalSavers, allows eligible employees to make automated contributions to a Roth IRA from each paycheck. This way, they can save as much as $6,000 per year if they’re under 50 and $7,000 per year if they’re over the age of 50. With reliable cannabis business benefits administration, employers can meet their state’s requirements and offer their staff attractive benefits.

All employers in California that have 5 or more employees need to offer their team access to a retirement plan. It can be either CalSavers or a different, company-sponsored plan. To provide their employees with streamlined retirement savings plans on favorable conditions, marijuana businesses can adopt one managed by a benefit administration company.

Employers aren’t required to pay to enroll in CalSavers and this plan doesn’t enable employer contributions. Employees do have to pay an annual fee that ranges from 0.825 and 0.95 percent. Another alternative is the 401k plan, which allows employers to match their employees’ contributions, offers higher contribution limits, and provides both the Traditional and the Roth option. 

You can rely on Green Leaf Business Solutions for versatile cannabis benefit administration services that will protect your employees and facilitate the growth of your company.

Do not hesitate to reach out to us so you can learn more about our offer and make the most of this unique opportunity. 

We have developed cost-effective 401k plans with 3(16), 3(21) and 3(38) protections which enable employees to make contribution changes that feed directly into their payroll. Whether you opt for the Closed (Fixed) or the more flexible Open (Optional) plan which allows full customization, our service is dependable, consistent, and delivered on time.

Let us help you relieve your administrative burden and streamline your process so you can focus on your essential business functions. Our team has a strong track record in handling payroll for cannabis businesses,  as well as delivering efficient cannabis industry banking and providing integrated cannabis HR consulting services. You can count on us to provide you with a different plan such as Calsavers plan for the marijuana industry if 401k is not the right choice for you.

Contact us now to find out more compelling reasons to take advantage of our experience in the financial industry and take part in an MEP 401k plan!