Updated 2026-03-30
Principal vs ADP 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and ADP Retirement Services (#7, 8.1/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | ADP |
|---|---|---|
| Overall Score | 8.3/10 | 8.1/10 |
| Rank | #6 | #7 |
| AUM | $700 billion | $130 billion |
| Participants | 6 million | 3 million |
| Plan Sponsors | 46,000+ | 90,000+ |
| Founded | 1879 | 1949 |
Ratings Comparison
| Category | Principal | ADP |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.4/5 |
| Investment Options | 3.8/5 | 3.5/5 |
| Customer Service | 4.2/5 | 4.0/5 |
| Mobile App | 3.9/5 | 3.7/5 |
Fee Comparison
| Fee Type | Principal | ADP |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | $2,000 - $5,000/year base |
| Expense Ratios | 0.25% - 1.5% | Varies by investment partner |
| Trading Fees | Varies | Plan dependent |
| Advisory Fees | 0.40% - 1.0% | 0.35% - 0.75% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
ADP Strengths
- Direct payroll integration
- Automatic contribution processing
- Strong compliance support
- Easy setup for ADP payroll clients
Rollover, Loans & Withdrawals
| Feature | Principal | ADP |
|---|---|---|
| Rollover Platform | Principal.com | ADP Retirement Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via ADP portal, Phone (800-695-7526) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA |
Which Should You Choose?
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Choose ADP if you want:
- ADP payroll users
- Multi-state employers
- HR bundle seekers
- Compliance-focused companies
Our Verdict: Principal vs ADP
Principal Financial wins this comparison with a score of 8.3/10 vs 8.1/10. Principal excels with excellent for small business 401(k) plans, 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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Principal vs ADP: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and ADP Retirement Services for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while ADP is known for payroll integration. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to ADP's Varies by investment partner. Principal manages $700 billion in assets and serves 6 million participants, while ADP has $130 billion AUM and 3 million participants.
Key Differences: Principal vs ADP
When comparing Principal and ADP, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while ADP stands out for direct payroll integration. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Principal's customer service rating is 4.2/5 compared to ADP's 4.0/5. For mobile experience, Principal scores 3.9/5 while ADP scores 3.7/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose ADP if you're looking for adp payroll users. 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 Principal and ADP provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while ADP is best for adp payroll users. The right choice depends on your employer's plan and your priorities.
Principal charges expense ratios of 0.25% - 1.5% with admin fees of $1,500 - $5,000/year for small plans. ADP charges Varies by investment partner expense ratios with admin fees of $2,000 - $5,000/year base. Principal's fees rating is 3.5/5 compared to ADP's 3.4/5.
Yes, you can roll over between Principal and ADP. Principal uses Principal.com for rollovers, while ADP uses ADP Retirement Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. ADP offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Principal scores 3.8/5 for investment options, while ADP scores 3.5/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. ADP offers Partner Fund Lineups, Target Date Funds, Stable Value.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. ADP is best for adp payroll users, multi-state employers, hr bundle seekers, compliance-focused companies. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs ADP's $2,000 - $5,000/year base.
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