2025 Update on the Norfolk Southern 401k Plan

(Status as of December 31st, 2024)

In this comprehensive guide, we delve into the vital topic of the Norfolk Southern 401k for non 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 TIP (Thrift Investment Plan) is for non union employees only.

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

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

Plan Overview

• Plan Type: 401(k) defined contribution retirement plan for non-union employees of Norfolk Southern Corporation and participating subsidiaries
• Establishment: June 1, 1982
• Administration: Managed by Board of Managers, with Vanguard as trustee and record keeper
• Audit Firm: KPMG LLP (serving as auditor since 1983)

Financial Performance (2024)

• Total Net Assets: $1.55 billion (up from $1.47 billion in 2023)
• Net Asset Growth: $78.8 million increase during 2024
• Investment Returns: $173.9 million in total investment income, including $139.9 million in net appreciation
• Participant Loans: $14.7 million outstanding

Contribution Structure

• Employee Contributions: $41.9 million in 2024
• Employer Matching: $14.7 million in 2024
• Auto-enrollment: New employees automatically enrolled at 6% contribution rate
• Automatic Escalation: Contributions increase 1% annually up to 10% maximum
• Contribution Limits: Standard 401(k) limits apply ($23,500 for 2025, plus $7,500 catch-up for age 50+)

Matching Formula

• 100% match on first 1% of compensation contributed
• 50% match on contributions between 1% and 6% of compensation

Investment Options

• Total Investments: $1.54 billion across multiple asset classes
• Norfolk Southern Stock: $275.2 million held in Master Trust (17.7% of total assets)
• Vanguard Funds: Majority of investment options are Vanguard mutual funds and target-date funds
• Default Investment: Vanguard Target Retirement Trust based on participant’s age

Key Plan Features

• Immediate Vesting: All contributions are immediately 100% vested
• Loan Program: Participants can borrow from their accounts with 4.00%-9.50% interest rates
• Hardship Withdrawals: Available under specific circumstances
• Distribution Options: Flexible distribution options including installments and lump sums

Regulatory Compliance

• ERISA Qualified: Plan meets all ERISA requirements
• Tax Qualified: IRS determination letter confirms tax-qualified status

Unveiling the Norfolk Southern 401k Plan – TIP Non Agreement

Norfolk Southern extends an additional avenue for their non 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 at hire and are automatically enrolled in the 401K, unless you opt out.

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 Non 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 100% of your pre-tax contributions up to 1% of your compensation. Then, the amount over 1% but not more than 6% receives 50% matching contribution.
  • For example, if you contribute 7% of your salary, your employer matches some of that amount. In your case, NS matches 100% of your contributions up to 1% of your compensation, and 50% for contributions that exceed 1% up to 6%. Therefore you will receive a 2.5% match from Norfolk Southern.
• 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: $1.55 Billion as of December 31st, 2024. This represents a increase from $1.47 Billion as of December 31st, 2023, mainly attributed to appreciation and contributions in 2024.
• Total Contributions:
  • Employee Contributions: $41 million for 2024. Compared to $43 Million in 2023.
  • Norfolk Southern Contributions: $14 million for 2024. Same as in 2023.
• Total Deductions: $153 million for 2024. Compared to $90 Million in 2023.
• Total assets available for benefits (payable to employees’ 401(k) participants): $1.55 Billion as of December 31st, 2024. Compared to $1.47 Billion in 2023.
• Administrative Expenses: Administrative fees, covering investment management and transaction fees related to the assets in the 401(k) Plan, amounted to ≈815k in 2024.

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, 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 401k Plan is a powerful tool for securing your future.

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