A RolloverSystems news release said that participants will be able to rollover balances directly to an IRA. Under terms of the agreement, RolloverSystems will also provide individualized fulfillment services to facilitate the transaction process.
“This deal is consistent with a larger industry trend to make retirement account rollovers as efficient as possible without compromising service,” said Reginald Bowser, CEO of RolloverSystems, in the news release.
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 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 .