(Status as of December 31st, 2022)
In this comprehensive guide, we delve into the vital topic of the Norfolk Southern 401k. For railroad employees and retirees, understanding the intricacies of this plan is paramount.
Let’s dissect the details, illuminate the plan’s current status, and equip you with actionable insights. Your retirement security remains our utmost priority!
Unveiling the Norfolk Southern 401k Plan
Norfolk Southern extends an additional avenue for their agreement employees to save for retirement, beyond the Railroad retirement income (tier 1 and tier 2 benefits). But what exactly is a 401(k)? This plan empowers employees to save for retirement through pre-tax contributions from their paychecks.
Eligibility for NS employees begins after one year of service, starting from the first day of the month following the completion of this requirement.
The Blueprint of the 401k Plan
The Norfolk Southern Agreement Employee 401k Retirement Thrift Plan plays a pivotal role in retirement planning. Here’s a quick overview of how it operates:
Key Facts about NS Agreement 401k:
- Your contributions to the 401(k) are fully vested, meaning every dollar you contribute belongs to you. If you decide to leave NS, you can take your 401(k) account balance with you to your new job, cash it out, or rollover to an individual IRA/Roth.
- Norfolk Southern offers a matching contribution for employees. However, if you are covered by a retirement plan by the BLET (Brotherhood of Locomotive Engineers and Trainman) then you are not eligible to participate in the NS 401K. NS will match 30% of your pre-tax contributions, and will match Roth contributions not to exceed the lesser of $45 per month or 1.8% of your compensation.
- The responsibility for investment choices rests with you as the employee. You have the autonomy to select investments, with NS and the investment company (Vanguard) offering suitable options tailored to the broader employee base. These options may range from conservative to aggressive, giving you flexibility.
- Loans are available through your 401K, with a maximum loan term of five years.
- In-service withdrawals are permitted according to plan provisions, including withdrawals of rollover contributions, hardship withdrawals, and withdrawals after reaching the age of 59½.
As a side note, in addition to the NS 401(k), agreement employees also have access to the Employee Stock Purchase Plan. This plan allows you to purchase Norfolk Southern stock (NSC), and you can elect to have the NSC dividends reinvested into the NSC common stock fund.
Let’s Dive into the Status of the Norfolk Southern Agreement Employee 401k Plan and What It Means for You
A Closer Look at the Plan’s Status
To provide you with accurate insights, we’ve delved into the official source: the Securities and Exchange Commission (SEC) filing for Norfolk Southern as of December 31st, 2022. As of the filing date, the plan remains active and operational, serving as a valuable vehicle to help you prepare for retirement.
Key Status Updates:
- Total 401(k) Plan Assets: $877K as of December 31st, 2022. This represents a decrease from $1.06 Million as of December 31st, 2021, mainly attributed to fluctuations in the stock market in 2022 compared to the highs of 2021.
- Total Contributions:
- Employee Contributions: $39K for 2022.
- Norfolk Southern Contributions: $3K for 2022.
- Total Distributions: $74K for 2022.
- Net decrease in Assets from 2021 to 2022: $191K
- Total assets available for benefits (payable to employees’ 401(k) participants): $877K as of December 31st, 2022.
- Administrative Expenses: Administrative fees, covering investment management and transaction fees related to the assets in the 401(k) Plan, amounted to ≈$1K Million in 2022.
Embracing Your Norfolk Southern 401k Plan
Now that you understand the significance of the Norfolk Southern 401k Retirement Plan, let’s explore how you can make the most of it.
1. Understand Your Benefits Access information about company benefits on the NS website. When planning for retirement, consider the rule of thumb: a 4% withdrawal from your 401k over your retirement years should suffice to cover your desired retirement lifestyle, including Railroad Retirement Benefits. Additionally, consider increasing your savings rate in line with any pay raises.
2. Leverage Employer Match Maximize Norfolk Southern’s contribution match by contributing enough to take full advantage of this benefit. It’s essentially free money towards your retirement.
3. Diversify Your Portfolio Diversification is key to managing risk and optimizing returns. Norfolk Southern offers various investment options to align with your risk tolerance.
4. Monitor and Adjust Regularly review and adjust your investment choices to match your evolving financial goals and risk tolerance. Consider Vanguard’s target date mutual funds for a hassle-free approach.
5. Plan Ahead The earlier you start contributing to your 401k, the more time your investments have to grow through compound interest. Don’t delay; start today to secure your financial future.
Conclusion
The Norfolk Southern Agreement Employee 401k Retirement Plan is your ticket to a secure retirement. By comprehending its mechanics and staying informed about its status, you’re equipping yourself for financial success.
Remember to check your 401(k) investments and track your progress toward your retirement goals. Reach out to us today for personalized guidance. Let’s ensure your Norfolk Southern 401k Plan is a powerful tool for securing your future.
Your retirement dreams await—let’s start planning now!