Text saying What are the rules? Be sure to know all about cannabis IRAs

Is a Cannabis IRA Legal?

The cannabis industry is booming, and many people are looking to invest in this burgeoning market. Many have asked us here at Accuplan, “can I invest in cannabis with my IRA or 401k?” The answer is a bit of a gray area, but we’ll try to clear it up for you. Here is what you need to know about this murky topic of cannabis investing inside of an IRA or 401k.


Why is Investing in Cannabis a Gray Area?

The biggest reason investing in cannabis with your IRA or 401k is not apparent is that cannabis is still illegal on a federal level. This automatically puts any retirement account investing in cannabis in a gray area.

Being illegal creates a big problem for the cannabis industry because they constantly have to deal in cash, which can be dangerous. Because it is still illegal on a federal level, many businesses are reluctant to do business with cannabis companies, including banks. Most banks won’t even allow cannabis companies to open up bank accounts.

Another issue with investing in cannabis is that most 401k and IRA custodians will not allow it. While it may be legal in your state, it is still illegal on a federal level, so most custodians err on the side of caution. This is because they don’t want to deal with the hassle and potential legal issues that could come along with it.

Since cannabis investing is a bit of a gray area for retirement accounts, that doesn’t mean it is impossible to do.

So What Can You Do?

If you are set on investing in cannabis with your retirement account, your best option is to roll over your IRA or 401k into a self-directed account. This doesn’t remove the vagueness of investing in cannabis with a retirement account. It will always be murky while the federal government deems cannabis illegal. Setting up a cannabis IRA with a self-directed custodian is your best option for investing in cannabis.

With Accuplan, we provide another level of control through our IRA LLC product. This product may help remove some vagueness about investing in cannabis with a retirement account.

Investing Through an IRA LLC Helps

If you’re looking to invest in cannabis with your retirement account, you might have to get a little creative. For example, you’ll need to open an IRA LLC with your self-directed IRA. At Accuplan, we enjoy opening up the possibilities of your IRAs and 401ks, allowing you to invest in indeed anything as long as it is legal and follows IRS guidelines.

If you are determined to invest in cannabis, your best option with the least amount of issues is through a self-directed IRA and IRA LLC. An IRA LLC allows you to have checkbook control of your retirement account, giving you the ability to invest in anything as long as it follows IRS guidelines and is for the exclusive benefit of the IRA.

Because of our cost and expertise, we thoroughly believe our IRA LLC product is the best addition to a self-directed IRA. Learn more about Accuplans IRA LLC and how it works.


If you’re thinking of investing in cannabis with your retirement account, it’s essential to do your research first. There are many different types of cannabis businesses, and the ways to invest in the market are constantly changing, with new cannabis investment opportunities popping up all the time. Make sure you know all the facts and what options are available to you before deciding.

The cannabis industry outlook for the next few years is mixed. Read more about what may be in store for the cannabis industry here.

Don’t hesitate to reach out to an Accuplan expert with any questions. We’re always here to answer your questions and help you make the best decisions for your retirement accounts.

Subscribe to Our Newsletter!

Get industry related news, tips, tricks and techniques for alternative investing.