2025 Update on the Norfolk Southern 401k Plan Agreement Employee TRIP

(Status as of December 31st, 2024)

In this comprehensive guide, we will take a look at the TRIP (Thoroughbred Retirement Investment Plan) a vital topic of the Norfolk Southern 401k for agreement employees. For railroad employees and retirees, understanding the intricacies of this plan is paramount.

This guide is dedicated to the 2025 Update on the Norfolk Southern 401k Plan. Also, keep in mind that the NS TRIP (Thoroughbred Retirement Investment Plan) is for union employees only.

If you are a non union employee participating in NS 401K check out the 2025 Update on the Norfolk Southern 401k Plan for non agreement employees.

Let’s dissect the details, illuminate the plan’s current status, and equip you with actionable insights. Know your retirement plan status with the most recent information from June 26, 2025.

key takeaways 2025 Update on the Norfolk Southern 401k Plan- Non Agreement

key takeaways from the Thoroughbred Retirement Investment Plan of Norfolk Southern Corporation and Participating Subsidiary Companies for the year ended December 31, 2024:

Based on my review of Norfolk Southern Corporation’s Thoroughbred Retirement Investment Plan 11-K filing for 2024, here are the key takeaways:

Plan Performance & Assets

• Total net assets: $1,048.0 Billion as of December 31, 2024 (up from $960.4 Billion in 2023)
• Net increase: $87.6 million in assets during 2024
• Investment performance: Strong year with $81.7 million in net appreciation of investments
• Total investment income: $105.2 million including dividends and interest

Investment Holdings

• Plan portfolio: $806.5 million in various investments at fair value
• Company stock exposure: $215 million in Norfolk Southern common stock through Master Trust
• Primary investment manager: Vanguard (serves as trustee, record keeper, and manages most funds)
• Investment options: Mix of index funds, target-date funds, bond funds, and company stock

Plan Structure & Contributions

• Plan type: 401(k) defined contribution plan with Employee Stock Ownership Plan (ESOP) component
• Eligibility: Agreement Employees of Norfolk Southern and participating subsidiaries
  • Not eligible for the plan if you are currently participating in the BLET (Brotherhood of Locomotive Engineers and Trainmen) defined contribution plan for the same year.
• Employee contributions: $51.2 million in 2024
• Employer matching: $3.4 million (30% match up to lesser of $45/month or 1.8% of compensation)
• Contribution limits: Standard 401(k) limits ($23,500 for 2024, plus $7,500 catch-up for age 50+)

Key Plan Features

• Immediate vesting: All employee contributions
• Matching vesting: Fully vested after one year of service. This is NS matching contribution to you account.
• Loan program: $25.8 million in outstanding participant loans (4.25%-9.50% interest rates)
• Distribution options: Various withdrawal and rollover options available

Financial Health Indicators

• Benefits paid: $70.1 million distributed to participants
• Administrative costs: Low at $1.1 million
• Tax-qualified status: IRS determination letter confirms plan compliance

Participant Services

• Professional management: Vanguard Managed Account Program available
• Target-date funds: Default investment for new participants
• Dividend options: NS stock dividends can be taken in cash or reinvested

Unveiling the Norfolk Southern 401k Plan – TRIP Agreement Employee

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.

The Blueprint of the 401k Plan

The Norfolk Southern Agreement Employee 401k Thoroughbred Retirement Investment 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. NS will match 30% up to lesser of $45/month or 1.8% of 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 Ownership 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 of the Employee stock ownership plan.

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, 2024. 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: $1.04 Billion as of December 31st, 2024. This represents a increase from $960 Million as of December 31st, 2023, mainly attributed to appreciation and contributions in 2024.
• Total Contributions:
  • Employee Contributions: $51 million for 2024.
  • Norfolk Southern Contributions to the agreement 401K: $3.4 million for 2024.
• Total Deductions: $73 million for 2024.
• Total assets available for benefits (payable to employees’ 401(k) participants): $1.04 Billion as of December 31st, 2024.
• Administrative Expenses: Administrative fees, covering investment management and transaction fees related to the assets in the 401(k) Plan, amounted to 1.09 Million in 2024.

Embracing Your Norfolk Southern 401k Plan

Now that you understand the significance of the 2025 Update on the Norfolk Southern 401k Plan Agreement Employee TRIP, 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, in addition to your 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 TRIP 401k Plan is a powerful tool for securing your future.

Your retirement dreams await, let’s start planning now!