Cannabis companies looking to offer retirement benefits often face major hurdles—from federal regulatory restrictions to sudden plan cancellations. But one company is working to change that.

Leading Retirement Solutions (LRS) has emerged as a key player in helping cannabis operators provide reliable, compliant, and cost-effective 401(k) plans. For an industry where many major custodians and investment firms refuse to participate due to marijuana’s Schedule I status, LRS fills a critical gap.

Jon McCulloch, Director of Operations Support at Paragon, a cannabis payroll firm, recalls the chaos some of their clients faced: “A few years back, we had about thirty cannabis operator clients who were suddenly ejected from their 401(k) vendor and were in an emergency situation because of it,” he said. “We knew we needed to find a 401(k) vendor that is going to offer stability to our clients.”

That search led them to LRS, which designs plans specifically for cannabis businesses. The company works around federal restrictions by tapping into a network of cannabis-friendly service providers—including CPAs, attorneys, HR consultants, and payroll processors—to keep clients compliant and supported.

Hannah Conlisk, HR Operations Specialist at Native Roots, says LRS helped her company reduce the administrative burden of offering retirement benefits. “The biggest administrative headache for me with our last 401(k) vendor was dealing with the annual IRS audits of our plan, which was necessary for compliance,” she said. “LRS presented us with an affordable plan option in which they handle the audit, and that won us over immediately.”

By tailoring investment options and plan designs to meet the specific needs of cannabis operators, LRS offers a rare layer of stability in an otherwise uncertain regulatory landscape.