Updated 2026-03-30
Principal vs Merrill 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Merrill Lynch (#8, 8.0/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Merrill |
|---|---|---|
| Overall Score | 8.3/10 | 8.0/10 |
| Rank | #6 | #8 |
| AUM | $700 billion | $3.0 trillion |
| Participants | 6 million | 5 million |
| Plan Sponsors | 46,000+ | 2,500+ |
| Founded | 1879 | 1914 |
Ratings Comparison
| Category | Principal | Merrill |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.3/5 |
| Investment Options | 3.8/5 | 4.5/5 |
| Customer Service | 4.2/5 | 4.1/5 |
| Mobile App | 3.9/5 | 4.2/5 |
Fee Comparison
| Fee Type | Principal | Merrill |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | Varies by plan size |
| Expense Ratios | 0.25% - 1.5% | 0.03% - 1.5% |
| Trading Fees | Varies | $0 - $6.95 |
| Advisory Fees | 0.40% - 1.0% | 0.45% - 1.5% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Merrill Strengths
- Bank of America Preferred Rewards benefits
- Strong advisory and guidance services
- complete financial planning
- Wide investment selection
Rollover, Loans & Withdrawals
| Feature | Principal | Merrill |
|---|---|---|
| Rollover Platform | Principal.com | Benefits OnLine |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via Benefits OnLine, Phone (888-968-4015), Bank of America branches |
| 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 Merrill if you want:
- BofA customers
- Advice seekers
- Large employers
- Full-service needs
Our Verdict: Principal vs Merrill
Principal Financial wins this comparison with a score of 8.3/10 vs 8.0/10. 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 Merrill: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Merrill Lynch for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Merrill is known for bofa integration. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Merrill's 0.03% - 1.5%. Principal manages $700 billion in assets and serves 6 million participants, while Merrill has $3.0 trillion AUM and 5 million participants.
Key Differences: Principal vs Merrill
When comparing Principal and Merrill, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Merrill stands out for bank of america preferred rewards benefits. 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 Merrill's 4.1/5. For mobile experience, Principal scores 3.9/5 while Merrill scores 4.2/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Merrill if you're looking for bofa customers. 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 Merrill provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Merrill is best for bofa customers. 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. Merrill charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size. Principal's fees rating is 3.5/5 compared to Merrill's 3.3/5.
Yes, you can roll over between Principal and Merrill. Principal uses Principal.com for rollovers, while Merrill uses Benefits OnLine. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Merrill 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 Merrill scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Merrill offers Mutual Funds, ETFs, Stocks.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Merrill is best for bofa customers, advice seekers, large employers, full-service needs. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Merrill'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: 2026-03-30