With the passage of the 2018 Farm Bill by President Donald Trump, hemp and Cannabidiol, or CBD, companies can sponsor 401(k) plans for employees and take advantage of the related tax deductions.
Josh Horn, partner and co-chair of Fox Rothschild’s Cannabis Law practice in Philadelphia, explains that hemp that has tetrahydrocannabinol, or THC, with a 0.3% dry weight, and CBD, which is derived from hemp, were taken off the controlled substance list by the Farm Bill. The bill also allows hemp farmers to apply for crop insurance, and, according to Horn, makes banking and finance systems available to these businesses.
Michael Nepveux, an economist with the American Farm Bureau Federation, said in an article, “Uncertainty still exists about how and when regulations in general will be implemented and what those regulations will look like,” adding that regulators indicated it will likely not be until the 2020 planting season that definitive rules will be in place.
Matthew Able, senior partner at law firm Cannabis Counsel PLC and executive director of Michigan NORMAL [National Organization for the Reform of Marijuana Laws], says he had a couple of clients call about the new law. Clients are usually individuals or smaller companies, and they are not yet thinking about offering a 401(k). “If they make a lot of money this year, there may be a lot more action on that next year,” he says.
When they do think about establishing a 401(k), hemp and CBD companies may face obstacles. According to Read more at: https://www.planadviser.com/exclusives/newly-allowed-401ks-will-need-advisers/