Top 5 Employee Advantages of Having a 401(k) Retirement Plan

Preparing for the future is crucial, especially in times of uncertainty. After decades of hard work, you’re entitled to a comfortable, worry-free retirement. This scenario is only possible if you start planning way ahead and save for old age on time. 

Professionals in the cannabis industry typically don’t have access to advantageous employee benefits. However, thanks to innovative marijuana business retirement administration, you can now access a highly sought-after 401(k) retirement plan. Keep reading to learn what advantages it can bring you.

What are the advantages of having a 401(k)?

Although the cannabis industry is undergoing a massive growth spurt, the professionals in the field are at a disadvantage compared to those working in other fields. Because of the multiple hurdles faced by operators, their staff is often paid in cash and undertrained. And it doesn’t end there. They also often miss out on the most favorable retirement planning options.

While the attractive features of 401(k) make it one of the most popular employee benefits plans in other industries, it has only recently been offered to cannabis employees. With a 401(k) plan, employees can unlock a set of excellent perks. Here are some of them.

1. Tax advantages

With 401(k), pre-tax dollars from an employee’s paycheck are deposited into their retirement account. This type of plan saves you the money you would otherwise spend on taxes. Since your taxable income is lower, you need to pay less in income tax. By the time you retire, you’re expected to be a tax bracket down, so tax savings are viable in the long term. 

2. Employer contributions

Once the employee deposits a part of their earnings, their employer matches these savings with another amount. This can be a predetermined portion of the person’s salary or another amount up to a certain limit. This arrangement is actually beneficial for employers as well because it improves employee satisfaction and attracts high quality professionals to their team.

3. Higher contribution limitations

With these plans, you can make higher yearly contributions when compared to IRAs. This means that you can save money more rapidly and retire earlier in life than people with IRA plans.

4. Security

Having a retirement plan to count on in the post-career phase of your life is a welcome benefit. As life expectancy increases, you can expect to be retired for more than 25 years. If you prioritize planning for the future, your senior age can be comfortable and stress-free. 

5. Convenience

Because the plan is based on payroll deductions, 401(k) contributions are automated and streamlined, causing no inconvenience for the employee. New hires can be auto-enrolled so they start saving for retirement as soon as they start working.

Where can I find reliable marijuana business retirement administration?

Green Leaf Business Solutions provides retirement benefits management for cannabis operators, paving the way for progress and innovations in the industry. Cannabis operators can show how much they appreciate their workforce by giving them access to an attractive 401(k) plan managed and implemented by us. While this advantageous program still isn’t the norm for cannabis employees, forward-thinking companies are now able to offer it to their teams. 

This plan gives both employees and employers the chance to reap the benefits of tax deductions and tax credits. It is available across the USA and designed to minimize your payroll tax burdens. Our services are also reasonably priced so they don’t exceed your budget.

Reach out to us to make a reliable partnership with the leading provider of retirement savings management, payroll processing, and banking solutions. Let’s take over the market together!