SHF Holdings has announced the launch of the Safe Harbor Retirement Plan, a pooled employer 401(k) plan designed specifically for state-legal cannabis businesses and the companies that serve them.
The plan provides access to a broad 401(k) investment portfolio and utilizes collective investment trusts structured to support participation by cannabis-related businesses within a framework that is intended to be compliant with applicable laws.
Solving a longstanding market gap
Many traditional 401(k) providers are not structured to support cannabis-related businesses, creating uncertainty for employers and employees alike.
In some cases, cannabis businesses have experienced sudden plan terminations or service disruptions with limited notice. In certain situations, this can result in early withdrawal penalties and tax implications for participants, depending on individual circumstances and applicable regulations.
The Safe Harbor Retirement Plan is designed to provide a more durable path forward for the employees and employers impacted by these issues. The plan is structured to support cannabis-related businesses directly, helping reduce the risk of disruption and supporting long-term continuity for employers and employees.
Expanding the safe harbor financial solutions platform
The Retirement Plan launch represents an important step in Safe Harbor's continued expansion into a broader financial solutions platform for the cannabis industry. Safe Harbor has built infrastructure to support the full employee financial lifecycle for cannabis operators.
Employee Banking - Safe Harbor offers compliant banking solutions that give cannabis employees access to stable personal banking services.
Payroll & HR - Through the acquisition of 420 IT Solutions and partnerships with cannabis-focused payroll providers, Safe Harbor supports core workforce operations.
Retirement - The Safe Harbor Retirement Plan adds long-term savings infrastructure, extending support beyond day-to-day operations into financial stability for employees.
The plan is designed to support a wide range of participants. Operators with both cannabis and non-cannabis businesses can enroll employees across entities under a single plan. Companies that serve or invest in cannabis businesses may also participate, expanding access to compliant retirement solutions.
The first adopting member is our own company, Safe Harbor.
"For years, cannabis operators have tried to offer retirement benefits to their employees while navigating uncertainty around plan stability," said 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."
This offering extends Safe Harbor's broader platform of financial solutions for the cannabis industry, supporting how businesses bank, borrow, operate, and grow.
For more information:
Safe Harbor Financial
shfinancial.org
