Updated 2026-03-20
Principal vs Employee Fiduciary 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Employee Fiduciary (#24, 6.2/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Employee Fiduciary |
|---|---|---|
| Overall Score | 8.3/10 | 6.2/10 |
| Rank | #6 | #24 |
| AUM | $700 billion | $6 billion |
| Participants | 6 million | 80,000 |
| Plan Sponsors | 46,000+ | 3,000+ |
| Founded | 1879 | 2004 |
Ratings Comparison
| Category | Principal | Employee Fiduciary |
|---|---|---|
| Fees & Costs | 3.5/5 | 4.8/5 |
| Investment Options | 3.8/5 | 3.2/5 |
| Customer Service | 4.2/5 | 4.2/5 |
| Mobile App | 3.9/5 | 2.5/5 |
Fee Comparison
| Fee Type | Principal | Employee Fiduciary |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | $1,500/year + $30/participant |
| Expense Ratios | 0.25% - 1.5% | 0.03% - 0.15% |
| Trading Fees | Varies | $0 |
| Advisory Fees | 0.40% - 1.0% | Included as 3(38) fiduciary |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Employee Fiduciary Strengths
- Full 3(38) investment fiduciary services included
- Among the lowest all-in costs
- Consistently rated best by independent reviewers
- Low-cost Vanguard fund lineup
Rollover, Loans & Withdrawals
| Feature | Principal | Employee Fiduciary |
|---|---|---|
| Rollover Platform | Principal.com | Employee Fiduciary Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Phone (877-401-5100), Online portal |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA, Required Minimum Distributions |
Which Should You Choose?
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Choose Employee Fiduciary if you want:
- Cost-conscious small businesses
- Employers wanting fiduciary protection
- Index fund believers
- Plan sponsors seeking simplicity
Our Verdict: Principal vs Employee Fiduciary
Principal Financial wins this comparison with a score of 8.3/10 vs 6.2/10. 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 Employee Fiduciary: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Employee Fiduciary for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Employee Fiduciary is known for 3(38) fiduciary. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Employee Fiduciary's 0.03% - 0.15%. Principal manages $700 billion in assets and serves 6 million participants, while Employee Fiduciary has $6 billion AUM and 80,000 participants.
Key Differences: Principal vs Employee Fiduciary
When comparing Principal and Employee Fiduciary, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Employee Fiduciary stands out for full 3(38) investment fiduciary services included. 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 Employee Fiduciary's 4.2/5. For mobile experience, Principal scores 3.9/5 while Employee Fiduciary scores 2.5/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Employee Fiduciary if you're looking for cost-conscious 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 Principal and Employee Fiduciary provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Employee Fiduciary is best for cost-conscious small businesses. 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. Employee Fiduciary charges 0.03% - 0.15% expense ratios with admin fees of $1,500/year + $30/participant. Principal's fees rating is 3.5/5 compared to Employee Fiduciary's 4.8/5.
Yes, you can roll over between Principal and Employee Fiduciary. Principal uses Principal.com for rollovers, while Employee Fiduciary uses Employee Fiduciary Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Employee Fiduciary 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 Employee Fiduciary scores 3.2/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Employee Fiduciary offers Vanguard Index Funds, Target Date Funds, Bond Funds.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Employee Fiduciary is best for cost-conscious small businesses, employers wanting fiduciary protection, index fund believers, plan sponsors seeking simplicity. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Employee Fiduciary's $1,500/year + $30/participant.
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: 2026-03-20