Cannabis Industry 401(k) Plans Surpass $71 Million as First-Ever Retirement Report Signals Market Maturity
- The cannabis industry now holds over $71 million in 401(k) retirement assets across 140 plans representing more than 17,000 participants, showing rapid expansion of retirement benefits.
- Approximately 74% of cannabis 401(k) plans feature automatic enrollment, with 40% of eligible employees participating and employer contributions averaging 4%.
- Plans widely offer advanced features like Qualified Default Investment Alternatives, auto-escalation, and in-service distributions, reflecting increasingly sophisticated retirement plan designs.
- Imminent federal cannabis rescheduling and regulatory changes such as SECURE Act 2.0 are expected to further accelerate adoption of competitive retirement benefits within the marijuana industry.
A new industry report finds that marijuana businesses are rapidly expanding access to retirement benefits, with more than $71 million now held in cannabis-sector 401(k) plans. Leading Retirement Solutions, a Seattle-based retirement plan provider, has released what it describes as the first comprehensive Cannabis Industry Retirement Report, analyzing 140 cannabis 401(k) plans spanning more than 420 entities. Altogether, the plans represent over 17,000 participants and more than $71 million in assets, offering one of the clearest snapshots yet of how retirement benefits are taking hold in the marijuana industry.
According to the report, 74% of plans now include automatic enrollment, a feature long common in traditional industries but historically rare among cannabis operators due to banking and tax barriers. Participation remains a work in progress, with nearly 40% of eligible employees enrolled. Among those who stay in their plans, workers defer an average of 3.4% of pre-tax income and 5% through Roth contributions. Employers are contributing an average of 4%.
The analysis also found that nearly all plans offer Qualified Default Investment Alternatives, while automation tools such as auto-escalation are becoming standard. In-service distributions are also widely available, signaling increasingly sophisticated plan design.
Kirsten Curry, CEO of Leading Retirement Solutions, said the data reflects “meaningful progress for cannabis employers and their workforce,” noting that retirement benefits are increasingly serving as a competitive tool rather than a luxury.
The report comes as the federal rescheduling of cannabis is underway, with a final order expected soon that could significantly reshape the industry’s financial landscape. If IRS code 280E restrictions are lifted through rescheduling, operators would gain access to standard business tax deductions and credits, potentially freeing up capital for employee benefits such as retirement plans.
At the same time, new federal retirement requirements under SECURE Act 2.0 and the expansion of state-mandated retirement programs are placing additional focus on employer-sponsored plans, notes the report. For marijuana businesses, the convergence of regulatory reform and maturing operations appears to be accelerating adoption of structured, competitive benefits packages.
As the industry continues to expand, the data suggests retirement planning is becoming another marker of stability for a sector that has long operated outside traditional financial systems.