IRA & employer plan eligibility
Good morning-this is a first for me.
A registered firm located in Washington state in the business of distributing cannabis is interested in either offering employer plan i.e. 401(k) or a payroll deducted IRA. Are they eligible? The empoyees recieve W-2 income -my concern is the federal government does not recognize cannabis sales as it is still illegal under federal law
I’ll guidance is appreciated
Thank you
Permalink Submitted by Alan - IRA critic on Fri, 2016-08-12 19:36
Since ERISA includes a number of provisions to protect participants, and participants in most cases have no idea about illegal employer activities, I think that the participant contributions would not lose any of these protections. However, the business itself may not be protected from writing off any plan expenses or from other penalties.