An apparatus and method for forming specially-configured handles in a plurality of interconnected plastic bags traveling in a longitudinal direction. The plastic bags are interconnected along transverse lines of weakness spaced at bag-length distances apart. The apparatus and method comprise using a rotary anvil and a rotary cutting die. The rotary anvil has a first axis of rotation. The rotary cutting die is disposed adjacent to the rotary anvil and has a second axis of rotation substantially parallel to the first axis of rotation. The rotary cutting die includes a rotatable cylindrical shaft, a blade shell mounted on the shaft, and a generally W-shaped blade formed on the blade shell. The blade has a base portion and a pair of substantially linear opposing legs, and the base portion has an inverted, V-shaped configuration. The opposing legs extend upwardly relative to the base portion and outwardly relative to each other. The blade cuts and thereby forms a pair of handles in each of the plastic bags in response to passing the plastic bags between the rotary anvil and the rotary cutting die.