Updated 2026-03-30
Fidelity vs Principal 401(k) Comparison
Compare Fidelity Investments (#1, 9.5/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Fidelity | Principal |
|---|---|---|
| Overall Score | 9.5/10 | 8.3/10 |
| Rank | #1 | #6 |
| AUM | $4.5 trillion | $700 billion |
| Participants | 43 million | 6 million |
| Plan Sponsors | 23,000+ | 46,000+ |
| Founded | 1946 | 1879 |
Ratings Comparison
| Category | Fidelity | Principal |
|---|---|---|
| Fees & Costs | 4.9/5 | 3.5/5 |
| Investment Options | 4.9/5 | 3.8/5 |
| Customer Service | 4.8/5 | 4.2/5 |
| Mobile App | 4.7/5 | 3.9/5 |
Fee Comparison
| Fee Type | Fidelity | Principal |
|---|---|---|
| Admin Fees | $0 - varies by plan | $1,500 - $5,000/year for small plans |
| Expense Ratios | 0.00% - 0.75% | 0.25% - 1.5% |
| Trading Fees | $0 for stocks/ETFs | Varies |
| Advisory Fees | 0.35% - 1.0% | 0.40% - 1.0% |
Fidelity Strengths
- Zero expense ratio index funds (FZROX, FZILX)
- Industry-leading mobile app and online platform
- 24/7 customer service with dedicated retirement specialists
- Extensive investment options including BrokerageLink
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Rollover, Loans & Withdrawals
| Feature | Fidelity | Principal |
|---|---|---|
| Rollover Platform | NetBenefits | Principal.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via NetBenefits, Phone (800-343-3548), Fidelity branch offices | Online via Principal.com, Phone (800-547-7754) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA |
Which Should You Choose?
Choose Fidelity if you want:
- Large employers
- Cost-conscious investors
- Self-directed investors
- Solo 401(k) seekers
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Our Verdict: Fidelity vs Principal
Fidelity Investments wins this comparison with a score of 9.5/10 vs 8.3/10. Fidelity excels with zero expense ratio index funds (fzrox, fzilx), making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.
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Fidelity vs Principal: Complete 401(k) Comparison for 2026
Choosing between Fidelity Investments and Principal Financial for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Principal is known for small business focus. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Principal's 0.25% - 1.5%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Principal has $700 billion AUM and 6 million participants.
Key Differences: Fidelity vs Principal
When comparing Fidelity and Principal, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Principal stands out for excellent for small business 401(k) plans. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Principal's 4.2/5. For mobile experience, Fidelity scores 4.7/5 while Principal scores 3.9/5.
Which Provider is Right for You?
Choose Fidelity if you prioritize large employers. Choose Principal if you're looking for small businesses. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Fidelity and Principal provider pages.
Frequently Asked Questions
Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Principal is best for small businesses. The right choice depends on your employer's plan and your priorities.
Fidelity charges expense ratios of 0.00% - 0.75% with admin fees of $0 - varies by plan. Principal charges 0.25% - 1.5% expense ratios with admin fees of $1,500 - $5,000/year for small plans. Fidelity's fees rating is 4.9/5 compared to Principal's 3.5/5.
Yes, you can roll over between Fidelity and Principal. Fidelity uses NetBenefits for rollovers, while Principal uses Principal.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Fidelity offers 401(k) loans. Principal offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Fidelity scores 4.9/5 for investment options, while Principal scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Principal offers Mutual Funds, Target Date Funds, Stable Value.
For small businesses, consider plan minimums and per-participant costs. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Compare admin fees: Fidelity charges $0 - varies by plan vs Principal's $1,500 - $5,000/year for small plans.
Pavlo Pyskunov
Managing Director & Investment Fund Director
Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.
Last updated: 2026-03-30