Updated 2026-03-30

Principal 401(k) Provider Review

Principal Financial Group specializes in serving small to mid-sized businesses with full-service retirement solutions. Known for bundled services and strong employer support.

Small Business 401(k) Specialist • Rank #6 • Score: 8.3/10 • Founded 1879 • Des Moines, IA

$700 billion
Assets Under Management
6 million
Total Participants
46,000+
Plan Sponsors
1879
Year Founded

Ratings Breakdown

Fees & Costs
3.5/5
Investment Options
3.8/5
Customer Service
4.2/5
Mobile App
3.9/5

Pros and Cons

Advantages

  • Excellent for small business 401(k) plans
  • Bundled benefits solutions
  • Strong customer service for plan sponsors
  • SimpleInvest managed portfolios
  • Insurance product integration
  • Flexible plan designs

Disadvantages

  • Higher fees for smaller plans
  • Limited investment selection vs big providers
  • Technology platform less advanced
  • Revenue sharing can increase costs
  • Less suitable for large enterprises

Principal 401(k) Fees

Fee TypeAmount
Administrative Fees$1,500 - $5,000/year for small plans
Expense Ratios0.25% - 1.5%
Trading FeesVaries
Advisory Fees0.40% - 1.0%

Principal 401(k) Rollover Options

Rolling Into Principal

Principal accepts rollovers from 401(k), 403(b), and IRA accounts through Principal.com or by calling 800-547-7754. The Simply Retirement platform streamlines the rollover process for small business plans.

Platform: Principal.com

Rolling Out of Principal

Request an outbound rollover through Principal.com or by phone. Principal processes direct rollovers to IRAs, 401(k), and other qualified plans.

Rollover tip: Principal offers rollover assistance through their financial professionals who can help evaluate whether rolling over makes sense for your situation.

Principal 401(k) Withdrawals & Distributions

Withdrawal Methods

Online via Principal.comPhone (800-547-7754)

Distribution Options

Lump sumPartial withdrawalInstallment paymentsAnnuity purchaseRollover to IRA

Principal offers retirement income solutions including their Pension Builder annuity for participants who want guaranteed income. Withdrawals typically process in 2-4 business days.

Principal 401(k) Loans

Principal 401(k) plans may allow loans up to $50,000 or 50% of the vested balance. Repayment through payroll deduction over up to 5 years. Apply online through Principal.com.

Investment Options

Mutual FundsTarget Date FundsStable ValueManaged Portfolios

Key Features

Simply Retirement
SimpleInvest
Milestones Platform
Financial Wellness

Best For

Complete Principal Financial 401(k) Review for 2026

Principal Financial ranks #6 in our 2026 401(k) provider rankings with an overall score of 8.3 out of 10. Founded in 1879 and headquartered in Des Moines, IA, Principal manages $700 billion in assets and serves 6 million participants across 46,000+ plan sponsors.

Why Choose Principal for Your 401(k)?

Principal Financial Group specializes in small business 401(k) plans, making retirement benefits accessible to companies of all sizes. Simply Retirement by Principal offers affordable 401(k) solutions for businesses with under 100 employees. Principal's bundled services integrate 401(k) administration with insurance products, simplifying benefits management for employers. SimpleInvest managed portfolios provide hands-off investing for participants who prefer professional management. With roots dating to 1879, Principal brings over 140 years of financial services experience to retirement planning.

Popular searches: Principal 401k login, Principal Financial 401k, Simply Retirement Principal, Principal 401k fees, Principal small business 401k, Principal 401k withdrawal, Principal SimpleInvest, Principal 401k rollover, Principal retirement calculator, Principal 401k customer service, Principal Milestones, Principal 401k loan.

Related 401(k) Guides

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Frequently Asked Questions

Principal Financial charges administrative fees that vary by plan size. Expense ratios range from 0.25% - 1.5%, and advisory fees are 0.40% - 1.0%. Compare plans carefully as total costs depend on your plan size and investment selections.

You can log into your Principal Financial 401(k) account through the plan provider portal. Current and former employees can use the participant login page. First-time users will need to register with their Social Security number and date of birth.

Principal Financial ranks #6 in our 2026 provider rankings with a score of 8.3/10. They manage $700 billion in assets and serve 6 million participants. They are particularly strong for Small businesses, Bundled benefit seekers, Companies wanting insurance integration.

Yes, you can roll over your Principal Financial 401(k) to a Traditional IRA, Roth IRA, or a new employer plan. A direct rollover avoids mandatory tax withholding. Contact Principal or your new provider to initiate the transfer.

Principal Financial offers a range of investment options including Mutual Funds, Target Date Funds, Stable Value, Managed Portfolios. The specific fund lineup depends on your plan and may change periodically.

Principal Financial scores 8.3/10 overall with ratings of 3.5/5 for fees, 3.8/5 for investment options, 4.2/5 for customer service, and 3.9/5 for mobile app. Compare with other top providers on our comparison pages.

To roll into Principal: Principal accepts rollovers from 401(k), 403(b), and IRA accounts through Principal.com or by calling 800-547-7754. The Simply Retirement platform streamlines the rollover process for small business plans. To roll out: Request an outbound rollover through Principal.com or by phone. Principal processes direct rollovers to IRAs, 401(k), and other qualified plans. Use the Principal.com platform to manage your rollover.

Principal Financial offers withdrawals via Online via Principal.com, Phone (800-547-7754). Distribution options include Lump sum, Partial withdrawal, Installment payments, Annuity purchase, Rollover to IRA. Principal offers retirement income solutions including their Pension Builder annuity for participants who want guaranteed income. Withdrawals typically process in 2-4 business days.

Principal 401(k) plans may allow loans up to $50,000 or 50% of the vested balance. Repayment through payroll deduction over up to 5 years. Apply online through Principal.com.

Disclaimer: This review is for educational purposes only and is not financial advice. Provider details may change. Contact Principal Financial directly for the most current plan information.

Pavlo Pyskunov

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