Magazine article Black Enterprise

Let It Roll: Reginald Bowser Bends over Backward to Create Convenient 401(k) Transfers

Magazine article Black Enterprise

Let It Roll: Reginald Bowser Bends over Backward to Create Convenient 401(k) Transfers

Article excerpt

If you've ever attempted to roll over your 401(k), you know it's no simple two step. The process is often a daunting one, involving reams of paperwork, arcane language, and an interminable wait. One company, RolloverSystems Inc., promises to change the way rollovers are handled.

According to Reginald "Reggie" Bowser, 37, company founder and CEO, it's now just as easy to roll over your 401(k) as it is to roll over your cell phone minutes. His product, RolloverMarket, which was launched in March 2003, provides job changers with a free and easy service to reallocate their 401(k) investments to a tax-deferred IRA in less than 25 minutes. With roughly 14 million people who contribute to a defined contribution plan, such as a 401(k) or a 403(b), switching jobs each year; Bowser says the market is growing, He forecasts revenues of $2 million this year for his Charlotte, North Carolina-based company.

The traditional rollover process can take about six to eight weeks and involves five participants, including the investor who is responsible for coordinating communication for the rollover. "A lot of the time that is added to the rollover process results in the plan participant or the investor not knowing how to fill out the documents correctly," says Bowser. Often the rollover application is returned to the plan participant several times.

As a result, many people cash out, which after income taxes and a 10% federal penalty typically results in a 40% loss of their nest egg. "They don't do it because they want to; they do it because they don't know what to do," says Bowser. …

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