RolloverSystems, a Charlotte, North Carolina-based K plan technology provider, provides a service allowing workers to select a new plan when changing jobs from among a selection of IRA offers, according to a Charlotte Business Journal report.
Financial terms of the agreement with Principal Bank weren’t disclosed. Principal Bank is a division of Principal Financial Group Inc. RolloverSystems was founded in 2001.
The partnership is another example of many providers cashing in on the new opportunities created by the automatic rollover rule (See Small Auto Rollover Participants Could Be Opportunity ).
A new federal law requires employers to roll over ex-employees’ 401(k) balances of $1,000 to $5,000 (See DoL Releases EGTRRA IRA Rollover Rule ). Previously, employers could automatically cash out balances under $5,000 for participants who had not yet made a distribution election.
More information about RolloverSystems is at www.rolloversystems.com .