A transmission includes a plurality of clutches that are selectively engageable alone or in combination with each other to establish a plurality of forward drive modes, wherein one of the clutches is configured as a neutral idle (NI) clutch that is selectively actuated to shift the transmission into an NI state, and a controller. The controller is adapted to shift the transmission from a forward drive mode into the NI state during a coast-down maneuver prior to the transmission reaching a zero output speed. A method of shifting the transmission into the NI state includes determining the presence of a predetermined one of the forward drive modes using the controller, and using the controller to actuate a designated one of the clutches as an NI clutch to enter the NI state during the forward drive mode, during a coast-down maneuver, and prior to the transmission reaching a zero output speed.