Updated 2026-03-30
Principal vs Transamerica 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Transamerica (#11, 7.5/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Transamerica |
|---|---|---|
| Overall Score | 8.3/10 | 7.5/10 |
| Rank | #6 | #11 |
| AUM | $700 billion | $300 billion |
| Participants | 6 million | 6 million |
| Plan Sponsors | 46,000+ | 35,000+ |
| Founded | 1879 | 1904 |
Ratings Comparison
| Category | Principal | Transamerica |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.6/5 |
| Investment Options | 3.8/5 | 3.7/5 |
| Customer Service | 4.2/5 | 3.8/5 |
| Mobile App | 3.9/5 | 3.5/5 |
Fee Comparison
| Fee Type | Principal | Transamerica |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | $750 - $3,000/year |
| Expense Ratios | 0.25% - 1.5% | 0.25% - 1.2% |
| Trading Fees | Varies | Plan dependent |
| Advisory Fees | 0.40% - 1.0% | 0.35% - 0.85% |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Transamerica Strengths
- complete financial wellness programs
- Flexible plan design options
- Strong educational resources and tools
- Integrated workplace benefits platform
Rollover, Loans & Withdrawals
| Feature | Principal | Transamerica |
|---|---|---|
| Rollover Platform | Principal.com | Transamerica.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Online via Transamerica.com, Phone (800-755-5801) |
| 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 Transamerica if you want:
- Mid-sized companies
- Integrated benefits seekers
- Financial wellness focus
Our Verdict: Principal vs Transamerica
Principal Financial wins this comparison with a score of 8.3/10 vs 7.5/10. 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 Transamerica: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Transamerica for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Transamerica is known for workplace benefits. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Transamerica's 0.25% - 1.2%. Principal manages $700 billion in assets and serves 6 million participants, while Transamerica has $300 billion AUM and 6 million participants.
Key Differences: Principal vs Transamerica
When comparing Principal and Transamerica, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Transamerica stands out for complete financial wellness programs. 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 Transamerica's 3.8/5. For mobile experience, Principal scores 3.9/5 while Transamerica scores 3.5/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Transamerica if you're looking for mid-sized companies. 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 Transamerica provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Transamerica is best for mid-sized companies. 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. Transamerica charges 0.25% - 1.2% expense ratios with admin fees of $750 - $3,000/year. Principal's fees rating is 3.5/5 compared to Transamerica's 3.6/5.
Yes, you can roll over between Principal and Transamerica. Principal uses Principal.com for rollovers, while Transamerica uses Transamerica.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Transamerica 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 Transamerica scores 3.7/5. Both offer target-date funds, index funds, and managed accounts. Principal's investment options include Mutual Funds, Target Date Funds, Stable Value. Transamerica offers Mutual Funds, Target Date Funds, Stable Value.
For small businesses, consider plan minimums and per-participant costs. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Transamerica is best for mid-sized companies, integrated benefits seekers, financial wellness focus. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Transamerica's $750 - $3,000/year.
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