Updated 2026-03-30
Schwab vs Principal 401(k) Comparison
Compare Charles Schwab (#3, 9.1/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | Schwab | Principal |
|---|---|---|
| Overall Score | 9.1/10 | 8.3/10 |
| Rank | #3 | #6 |
| AUM | $8.5 trillion | $700 billion |
| Participants | 28 million | 6 million |
| Plan Sponsors | 3,200+ | 46,000+ |
| Founded | 1971 | 1879 |
Ratings Comparison
| Category | Schwab | Principal |
|---|---|---|
| Fees & Costs | 4.5/5 | 3.5/5 |
| Investment Options | 4.7/5 | 3.8/5 |
| Customer Service | 4.7/5 | 4.2/5 |
| Mobile App | 4.5/5 | 3.9/5 |
Fee Comparison
| Fee Type | Schwab | Principal |
|---|---|---|
| Admin Fees | $0 - varies by plan | $1,500 - $5,000/year for small plans |
| Expense Ratios | 0.03% - 0.80% | 0.25% - 1.5% |
| Trading Fees | $0 for stocks/ETFs | Varies |
| Advisory Fees | 0% - 0.80% | 0.40% - 1.0% |
Schwab Strengths
- Excellent customer service with 24/7 support
- complete research and education tools
- Schwab Intelligent Portfolios (free robo-advisor)
- Strong integration after TD Ameritrade merger
Principal Strengths
- Excellent for small business 401(k) plans
- Bundled benefits solutions
- Strong customer service for plan sponsors
- SimpleInvest managed portfolios
Rollover, Loans & Withdrawals
| Feature | Schwab | Principal |
|---|---|---|
| Rollover Platform | Schwab.com | Principal.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online via Schwab.com, Phone (800-724-7526), Schwab branch offices | Online via Principal.com, Phone (800-547-7754) |
| Distribution Options | Lump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA |
Which Should You Choose?
Choose Schwab if you want:
- Full-service seekers
- Active traders
- Those wanting local branches
- TD Ameritrade users
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Our Verdict: Schwab vs Principal
Charles Schwab wins this comparison with a score of 9.1/10 vs 8.3/10. Schwab excels with excellent customer service with 24/7 support, 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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Schwab vs Principal: Complete 401(k) Comparison for 2026
Choosing between Charles Schwab and Principal Financial for your 401(k) is an important decision that affects your retirement savings. Schwab offers full service while Principal is known for small business focus. In terms of fees, Schwab charges 0.03% - 0.80% expense ratios compared to Principal's 0.25% - 1.5%. Schwab manages $8.5 trillion in assets and serves 28 million participants, while Principal has $700 billion AUM and 6 million participants.
Key Differences: Schwab vs Principal
When comparing Schwab and Principal, consider their core strengths: Schwab excels with excellent customer service with 24/7 support, while Principal stands out for excellent for small business 401(k) plans. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Schwab's customer service rating is 4.7/5 compared to Principal's 4.2/5. For mobile experience, Schwab scores 4.5/5 while Principal scores 3.9/5.
Which Provider is Right for You?
Choose Schwab if you prioritize full-service seekers. Choose Principal if you're looking for small businesses. 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 Schwab and Principal provider pages.
Frequently Asked Questions
Charles Schwab scores higher in our 2026 rankings with 9.1/10. Schwab is best for full-service seekers, while Principal is best for small businesses. The right choice depends on your employer's plan and your priorities.
Schwab charges expense ratios of 0.03% - 0.80% with admin fees of $0 - varies by plan. Principal charges 0.25% - 1.5% expense ratios with admin fees of $1,500 - $5,000/year for small plans. Schwab's fees rating is 4.5/5 compared to Principal's 3.5/5.
Yes, you can roll over between Schwab and Principal. Schwab uses Schwab.com for rollovers, while Principal uses Principal.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
Schwab offers 401(k) loans. Principal offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.
Schwab scores 4.7/5 for investment options, while Principal scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. Schwab's investment options include Index Funds, Target Date Funds, Mutual Funds. Principal offers Mutual Funds, Target Date Funds, Stable Value.
For small businesses, consider plan minimums and per-participant costs. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Compare admin fees: Schwab charges $0 - varies by plan vs Principal's $1,500 - $5,000/year for small plans.
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