Updated 2026-03-30
T. Rowe Price vs Principal 401(k) Comparison
Compare T. Rowe Price (#5, 8.5/10) and Principal Financial (#6, 8.3/10) side by side across fees, ratings, features, and investment options.
Overall Comparison
| Feature | T. Rowe Price | Principal |
|---|---|---|
| Overall Score | 8.5/10 | 8.3/10 |
| Rank | #5 | #6 |
| AUM | $1.3 trillion | $700 billion |
| Participants | 10 million | 6 million |
| Plan Sponsors | 4,500+ | 46,000+ |
| Founded | 1937 | 1879 |
Ratings Comparison
| Category | T. Rowe Price | Principal |
|---|---|---|
| Fees & Costs | 3.8/5 | 3.5/5 |
| Investment Options | 4.6/5 | 3.8/5 |
| Customer Service | 4.4/5 | 4.2/5 |
| Mobile App | 4.2/5 | 3.9/5 |
Fee Comparison
| Fee Type | T. Rowe Price | Principal |
|---|---|---|
| Admin Fees | $0 - $50/year | $1,500 - $5,000/year for small plans |
| Expense Ratios | 0.30% - 1.2% | 0.25% - 1.5% |
| Trading Fees | $0 for T. Rowe Price funds | Varies |
| Advisory Fees | 0.30% - 1.25% | 0.40% - 1.0% |
T. Rowe Price Strengths
- Excellent actively managed fund performance
- Best-in-class target date funds
- Strong research capabilities
- No-transaction-fee mutual fund platform
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 | T. Rowe Price | Principal |
|---|---|---|
| Rollover Platform | Individual.troweprice.com | Principal.com |
| Loans Available | Yes | Yes |
| Withdrawal Methods | Online portal, Phone (800-225-5132) | Online via Principal.com, Phone (800-547-7754) |
| Distribution Options | Lump sum, Partial withdrawal, Installment payments, Rollover to IRA | Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA |
Which Should You Choose?
Choose T. Rowe Price if you want:
- Active fund believers
- Target-date fund users
- Research-oriented investors
- Long-term holders
Choose Principal if you want:
- Small businesses
- Bundled benefit seekers
- Companies wanting insurance integration
Our Verdict: T. Rowe Price vs Principal
T. Rowe Price wins this comparison with a score of 8.5/10 vs 8.3/10. T. Rowe Price excels with excellent actively managed fund performance, 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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T. Rowe Price vs Principal: Complete 401(k) Comparison for 2026
Choosing between T. Rowe Price and Principal Financial for your 401(k) is an important decision that affects your retirement savings. T. Rowe Price offers active management while Principal is known for small business focus. In terms of fees, T. Rowe Price charges 0.30% - 1.2% expense ratios compared to Principal's 0.25% - 1.5%. T. Rowe Price manages $1.3 trillion in assets and serves 10 million participants, while Principal has $700 billion AUM and 6 million participants.
Key Differences: T. Rowe Price vs Principal
When comparing T. Rowe Price and Principal, consider their core strengths: T. Rowe Price excels with excellent actively managed fund performance, 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. T. Rowe Price's customer service rating is 4.4/5 compared to Principal's 4.2/5. For mobile experience, T. Rowe Price scores 4.2/5 while Principal scores 3.9/5.
Which Provider is Right for You?
Choose T. Rowe Price if you prioritize active fund believers. 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 T. Rowe Price and Principal provider pages.
Frequently Asked Questions
T. Rowe Price scores higher in our 2026 rankings with 8.5/10. T. Rowe Price is best for active fund believers, while Principal is best for small businesses. The right choice depends on your employer's plan and your priorities.
T. Rowe Price charges expense ratios of 0.30% - 1.2% with admin fees of $0 - $50/year. Principal charges 0.25% - 1.5% expense ratios with admin fees of $1,500 - $5,000/year for small plans. T. Rowe Price's fees rating is 3.8/5 compared to Principal's 3.5/5.
Yes, you can roll over between T. Rowe Price and Principal. T. Rowe Price uses Individual.troweprice.com for rollovers, while Principal uses Principal.com. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.
T. Rowe Price 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.
T. Rowe Price scores 4.6/5 for investment options, while Principal scores 3.8/5. Both offer target-date funds, index funds, and managed accounts. T. Rowe Price's investment options include Active Mutual Funds, Target Date Funds, Index Funds. Principal offers Mutual Funds, Target Date Funds, Stable Value.
For small businesses, consider plan minimums and per-participant costs. T. Rowe Price is best for active fund believers, target-date fund users, research-oriented investors, long-term holders. Principal is best for small businesses, bundled benefit seekers, companies wanting insurance integration. Compare admin fees: T. Rowe Price charges $0 - $50/year 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