New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Is a Rollover into an IRA the Right Move for You as a Norfolk Southern Employee?

Healthcare Provider Update: Healthcare Provider for Norfolk Southern The primary healthcare provider for Norfolk Southern is Anthem, a subsidiary of Elevance Health, which offers a range of health insurance plans to the company's employees. Anthem provides various medical, dental, and vision coverage options, making it a crucial part of the employee benefits package. Potential Healthcare Cost Increases in 2026 As we approach 2026, Norfolk Southern employees face significant potential healthcare cost increases, a trend driven by a confluence of factors. With anticipated double-digit hikes in ACA marketplace premiums, some states could see increases exceeding 60%. A report indicates that many large employers, including Norfolk Southern, may shift more healthcare costs onto employees, with 51% planning to raise deductibles or out-of-pocket maximums as medical costs continue to inflate. Workers should be proactive in reviewing their benefits and making informed choices to mitigate the financial impact of these rising expenses in the coming year. Click here to learn more

Choosing an IRA rollover means that your money remains tax-advantaged and capable of growth, as in a Norfolk Southern-sponsored plan. You may also gain more investment options than what may have been available in your Norfolk Southern-sponsored plan. You may also gain oversight of managing these important retirement assets from your trusted Advisor.

If you roll your retirement plan assets over into an IRA account that you already own through your Advisor, you also receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.

'Receive the benefit of combined statements and holistic investment planning, making it easier to track your overall financial situation.'

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Some of the benefits of rolling your money into an IRA include:

Tax-deferred growth potential: This generally avoids current income tax and distribution penalties when removed from a Norfolk Southern-sponsored retirement plan.

More investment choices: This allows for additional contributions, if eligible. IRAs can be combined and handled by one provider, thereby reducing trustee costs and consolidating statements. Protection from creditors in federal bankruptcy proceedings. The combined amount of your required minimum distributions (RMDs) can be taken from any of your Traditional, SEP or SIMPLE IRAs.

However, there are also some important considerations that Norfolk Southern should make before rolling over their money into an IRA, these include:

Internal management fees might be higher than in a Norfolk Southern-sponsored retirement plan.
Fees and expenses depend largely on the investments you choose.
Loans from an IRA are not allowed.
Early distributions may be subject to a 10% IRS tax penalty in addition to income tax.
RMDs begin April 1 following the year you reach 70½ and annually thereafter; leaving the money in the former Fortune-500 plan may allow RMDs to be delayed until separation from service.
IRAs are subject to state laws governing malpractice, divorce, creditors (outside of bankruptcy), and other lawsuits; leaving the money in the former Norfolk Southern-plan may provide additional protection against creditors.
Net unrealized appreciation (NUA) is the difference between what you paid for employer securities and their increased value. You lose favorable tax treatment of NUA if the funds are rolled into an IRA.

Hopefully, these insights will be helpful as you plan your retirement from Norfolk Southern.

For more information about this topic, view our e-book here: https://retirekit.theretirementgroup.com/will-your-retirement-plan-retire-with-you-e-brochure-offer

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What is the primary purpose of the 401(k) plan offered by Norfolk Southern?

The primary purpose of the 401(k) plan offered by Norfolk Southern is to help employees save for retirement by providing a tax-advantaged way to invest their earnings.

Does Norfolk Southern offer a matching contribution for its 401(k) plan?

Yes, Norfolk Southern offers a matching contribution to help employees maximize their retirement savings.

How can employees at Norfolk Southern enroll in the 401(k) plan?

Employees at Norfolk Southern can enroll in the 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What types of investment options are available in Norfolk Southern's 401(k) plan?

Norfolk Southern's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

Can employees at Norfolk Southern change their contribution amount to the 401(k) plan?

Yes, employees at Norfolk Southern can change their contribution amount at any time, subject to the plan's guidelines.

What is the vesting schedule for the employer match in Norfolk Southern's 401(k) plan?

The vesting schedule for the employer match in Norfolk Southern's 401(k) plan typically follows a graded vesting schedule, which means employees gradually earn ownership of the employer contributions over time.

Are there any fees associated with Norfolk Southern's 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with Norfolk Southern's 401(k) plan, which are disclosed in the plan documents.

Can employees at Norfolk Southern take loans against their 401(k) savings?

Yes, employees at Norfolk Southern may have the option to take loans against their 401(k) savings, subject to the plan's terms and conditions.

What happens to a Norfolk Southern employee's 401(k) if they leave the company?

If a Norfolk Southern employee leaves the company, they have several options for their 401(k), including rolling it over to an IRA or a new employer's plan, or cashing it out (though this may incur taxes and penalties).

How often can employees at Norfolk Southern change their investment allocations in the 401(k) plan?

Employees at Norfolk Southern can typically change their investment allocations at any time, but there may be restrictions on frequent trading.