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
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 comprehensive 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.