Updated 2026-03-30
Principal vs TIAA 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and TIAA (#9, 7.9/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | TIAA |
|---|---|---|
| Overall Score | 8.3/10 | 7.9/10 |
| Rank | #6 | #9 |
| AUM | $700 billion | $1.3 trillion |
| Participants | 6 million | 5 million |
| Plan Sponsors | 46,000+ | 15,000+ |
| Founded | 1879 | 1918 |
Ratings Comparison
| Category | Principal | TIAA |
|---|---|---|
| Fees & Costs | 3.5/5 | 4.0/5 |
| Investment Options | 3.8/5 | 4.0/5 |
| Customer Service | 4.2/5 | 4.3/5 |
| Mobile App | 3.9/5 | 3.9/5 |
Fee Comparison
| Fee Type | Principal | TIAA |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | Varies by institution |
| Expense Ratios | 0.25% - 1.5% | 0.05% - 1.0% |
| Trading Fees | Varies | $0 for TIAA funds |
| Advisory Fees | 0.40% - 1.0% | 0.30% - 1.0% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
TIAA Strengths
- Dominant in education sector
- Strong lifetime income/annuity options
- Mission-aligned for nonprofits
- Excellent retirement income planning
Rollover, Loans & Withdrawals
| Feature | Principal | TIAA |
|---|---|---|
| Rollover Platform | Principal.com | TIAA.org |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via TIAA.org, Phone (800-842-2252), TIAA offices |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, Lifetime income annuity, Systematic withdrawals, Rollover to IRA |
Which Should You Choose?
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Choose TIAA if you want:
- Educators
- Nonprofits
- Healthcare workers
- Income-focused retirees
Our Verdict: Principal vs TIAA
Principal Financial wins this comparison with a score of 8.3/10 vs 7.9/10. 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 TIAA: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and TIAA for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while TIAA is known for education focus. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to TIAA's 0.05% - 1.0%. Principal manages $700 billion in assets and serves 6 million participants, while TIAA has $1.3 trillion AUM and 5 million participants.
Key Differences: Principal vs TIAA
When comparing Principal and TIAA, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while TIAA stands out for dominant in education sector. 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 TIAA's 4.3/5. For mobile experience, Principal scores 3.9/5 while TIAA scores 3.9/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose TIAA if you're looking for educators. 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 TIAA provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while TIAA is best for educators. 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. TIAA charges 0.05% - 1.0% expense ratios with admin fees of Varies by institution. Principal's fees rating is 3.5/5 compared to TIAA's 4.0/5.
Yes, you can roll over between Principal and TIAA. Principal uses Principal.com for rollovers, while TIAA uses TIAA.org. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. TIAA 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 TIAA scores 4.0/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. TIAA offers TIAA Funds, CREF Variable Annuities, Target Date Funds.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. TIAA is best for educators, nonprofits, healthcare workers, income-focused retirees. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs TIAA's Varies by institution.
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