Updated 2026-03-20
Principal vs Lincoln Financial 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Lincoln Financial (#17, 6.9/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Lincoln Financial |
|---|---|---|
| Overall Score | 8.3/10 | 6.9/10 |
| Rank | #6 | #17 |
| AUM | $700 billion | $350 billion |
| Participants | 6 million | 8 million |
| Plan Sponsors | 46,000+ | 10,000+ |
| Founded | 1879 | 1905 |
Ratings Comparison
| Category | Principal | Lincoln Financial |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.3/5 |
| Investment Options | 3.8/5 | 3.8/5 |
| Customer Service | 4.2/5 | 3.9/5 |
| Mobile App | 3.9/5 | 3.4/5 |
Fee Comparison
| Fee Type | Principal | Lincoln Financial |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | Varies by plan size |
| Expense Ratios | 0.25% - 1.5% | 0.10% - 1.5% |
| Trading Fees | Varies | Plan dependent |
| Advisory Fees | 0.40% - 1.0% | 0.40% - 1.0% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Lincoln Financial Strengths
- Strong guaranteed income and annuity options
- Insurance-backed stability
- Lincoln Director platform for plan sponsors
- Managed account services through Lincoln Alliance
Rollover, Loans & Withdrawals
| Feature | Principal | Lincoln Financial |
|---|---|---|
| Rollover Platform | Principal.com | Lincoln Financial Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via Lincoln Financial portal, Phone (800-454-6265), Through plan administrator |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Annuity conversion, Installment payments, 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 Lincoln Financial if you want:
- Companies wanting guaranteed income options
- Insurance-focused employers
- Mid-size to large plans
- Annuity seekers
Our Verdict: Principal vs Lincoln Financial
Principal Financial wins this comparison with a score of 8.3/10 vs 6.9/10. 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 Lincoln Financial: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Lincoln Financial for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Lincoln Financial is known for top 10 recordkeeper. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Lincoln Financial's 0.10% - 1.5%. Principal manages $700 billion in assets and serves 6 million participants, while Lincoln Financial has $350 billion AUM and 8 million participants.
Key Differences: Principal vs Lincoln Financial
When comparing Principal and Lincoln Financial, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Lincoln Financial stands out for strong guaranteed income and annuity options. 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 Lincoln Financial's 3.9/5. For mobile experience, Principal scores 3.9/5 while Lincoln Financial scores 3.4/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Lincoln Financial if you're looking for companies wanting guaranteed income options. 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 Lincoln Financial provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Lincoln Financial is best for companies wanting guaranteed income options. 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. Lincoln Financial charges 0.10% - 1.5% expense ratios with admin fees of Varies by plan size. Principal's fees rating is 3.5/5 compared to Lincoln Financial's 3.3/5.
Yes, you can roll over between Principal and Lincoln Financial. Principal uses Principal.com for rollovers, while Lincoln Financial uses Lincoln Financial Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Lincoln Financial 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 Lincoln Financial scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Lincoln Financial offers Mutual Funds, Target Date Funds, Fixed Annuities.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Lincoln Financial is best for companies wanting guaranteed income options, insurance-focused employers, mid-size to large plans, annuity seekers. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Lincoln Financial's Varies by plan size.
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