Updated 2026-03-20
Principal vs Vestwell 401(k) Comparison
Compare Principal Financial (#6, 8.3/10) and Vestwell (#21, 6.5/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Principal | Vestwell |
|---|---|---|
| Overall Score | 8.3/10 | 6.5/10 |
| Rank | #6 | #21 |
| AUM | $700 billion | $30 billion |
| Participants | 6 million | 300,000 |
| Plan Sponsors | 46,000+ | 25,000+ |
| Founded | 1879 | 2016 |
Ratings Comparison
| Category | Principal | Vestwell |
|---|---|---|
| Fees & Costs | 3.5/5 | 3.6/5 |
| Investment Options | 3.8/5 | 3.8/5 |
| Customer Service | 4.2/5 | 3.6/5 |
| Mobile App | 3.9/5 | 3.5/5 |
Fee Comparison
| Fee Type | Principal | Vestwell |
|---|---|---|
| Admin Fees | $1,500 - $5,000/year for small plans | Set by advisor/distributor |
| Expense Ratios | 0.25% - 1.5% | 0.03% - 1.0% |
| Trading Fees | Varies | $0 |
| Advisory Fees | 0.40% - 1.0% | Set by financial advisor |
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Vestwell Strengths
- Modern API-first technology platform
- White-label options for advisors
- Open architecture investment lineup
- Integrates with 100+ payroll providers
Rollover, Loans & Withdrawals
| Feature | Principal | Vestwell |
|---|---|---|
| Rollover Platform | Principal.com | Vestwell Portal |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Principal.com, Phone (800-547-7754) | Through financial advisor, Plan administrator portal, Phone support |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA | Lump sum, Partial withdrawal, 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 Vestwell if you want:
- Financial advisors
- Payroll companies
- Institutional distributors
- State IRA mandate compliance
Our Verdict: Principal vs Vestwell
Principal Financial wins this comparison with a score of 8.3/10 vs 6.5/10. 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 Vestwell: Complete 401(k) Comparison for 2026
Choosing between Principal Financial and Vestwell for your 401(k) is an important decision that affects your retirement savings. Principal offers small business focus while Vestwell is known for white label. In terms of fees, Principal charges 0.25% - 1.5% expense ratios compared to Vestwell's 0.03% - 1.0%. Principal manages $700 billion in assets and serves 6 million participants, while Vestwell has $30 billion AUM and 300,000 participants.
Key Differences: Principal vs Vestwell
When comparing Principal and Vestwell, consider their core strengths: Principal excels with excellent for small business 401(k) plans, while Vestwell stands out for modern api-first technology platform. 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 Vestwell's 3.6/5. For mobile experience, Principal scores 3.9/5 while Vestwell scores 3.5/5.
Which Provider is Right for You?
Choose Principal if you prioritize small businesses. Choose Vestwell if you're looking for financial advisors. 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 Vestwell provider pages.
Frequently Asked Questions
Principal Financial scores higher in our 2026 rankings with 8.3/10. Principal is best for small businesses, while Vestwell is best for financial advisors. 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. Vestwell charges 0.03% - 1.0% expense ratios with admin fees of Set by advisor/distributor. Principal's fees rating is 3.5/5 compared to Vestwell's 3.6/5.
Yes, you can roll over between Principal and Vestwell. Principal uses Principal.com for rollovers, while Vestwell uses Vestwell Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Principal offers 401(k) loans. Vestwell 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 Vestwell 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. Vestwell offers Open Architecture, Mutual Funds, 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. Vestwell is best for financial advisors, payroll companies, institutional distributors, state ira mandate compliance. Compare admin fees: Principal charges $1,500 - $5,000/year for small plans vs Vestwell's Set by advisor/distributor.
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