Updated 2026-03-30
Principal vs Guideline 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Guideline (#15, 7.1/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Guideline |
|---|---|---|
| Overall Score | 8.3/10 | 7.1/10 |
| Rank | #6 | #15 |
| AUM | $700 billion | $9 billion |
| Participants | 6 million | 700,000 |
| Plan Sponsors | 46,000+ | 40,000+ |
| Founded | 1879 | 2016 |
Ratings Comparison
| Category | Principal | Guideline |
|---|---|---|
| Fees & Costs | 3.5/5 | 4.7/5 |
| Investment Options | 3.8/5 | 3.3/5 |
| Customer Service | 4.2/5 | 3.9/5 |
| Mobile App | 3.9/5 | 4.0/5 |
Fee Comparison
| Fee Type | Principal | Guideline |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | $49/month base + $8/employee |
| Expense Ratios | 0.25% - 1.5% | 0.03% - 0.15% |
| Trading Fees | Varies | $0 |
| Advisory Fees | 0.40% - 1.0% | N/A - self-directed |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Guideline Strengths
- Extremely competitive pricing for small business
- Automatic compliance testing and filing
- Direct payroll integrations
- Low-cost Vanguard index funds
Rollover, Loans & Withdrawals
| Feature | Principal | Guideline |
|---|---|---|
| Rollover Platform | Principal.com | Guideline Dashboard |
| Loans Available | Yes | No |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via Guideline dashboard |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Rollover to IRA |
Which Should You Choose?
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Choose Guideline if you want:
- Small businesses
- Cost-conscious employers
- Hands-off plan sponsors
- Index fund believers
Our Verdict: Principal vs Guideline
Principal Financial wins this comparison with a score of 8.3/10 vs 7.1/10. 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 Guideline: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Guideline for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Guideline is known for small business. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Guideline's 0.03% - 0.15%. Principal manages $700 billion in assets and serves 6 million participants, while Guideline has $9 billion AUM and 700,000 participants.
Key Differences: Principal vs Guideline
When comparing Principal and Guideline, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Guideline stands out for extremely competitive pricing for small business. 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 Guideline's 3.9/5. For mobile experience, Principal scores 3.9/5 while Guideline scores 4.0/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Guideline 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 Principal and Guideline provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Guideline is best for 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. Guideline charges 0.03% - 0.15% expense ratios with admin fees of $49/month base + $8/employee. Principal's fees rating is 3.5/5 compared to Guideline's 4.7/5.
Yes, you can roll over between Principal and Guideline. Principal uses Principal.com for rollovers, while Guideline uses Guideline Dashboard. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Guideline does not offer 401(k) loans.
Principal scores 3.8/5 for investment options, while Guideline scores 3.3/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Guideline 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. Guideline is best for small businesses, cost-conscious employers, hands-off plan sponsors, index fund believers. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Guideline's $49/month base + $8/employee.
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