Principal Financial Group Review

Principal provides 401(k), 403(b), 401(a) and pooled employer plans, with Simply Retirement by Principal as an online 401(k) for businesses under 100 employees. Simply Retirement starts at $145 a month plus $6 per participant.

Company size: Small businesses, mid-market companies, enterprises
Pricing model: Base fee + per employee

Best for

Small businesses that want published 401(k) pricing through Simply Retirement
Plans that want automatic enrollment and a 3(38) investment fiduciary by default
Larger employers that want a dual QDIA with managed accounts

Not ideal for

Buyers who need published SOC 2 or ISO 27001 details
Large plans that want published prices (they are quoted)

By LeadChange Research TeamUpdated Oct 25, 2026Facts checked Oct 24, 2026

How we evaluated Principal Financial Group

This review rests on 14 facts checked against Principal Financial Group’s official pricing pages and documentation, most recently on Oct 24, 2026. We did not test the product hands-on: the score and the pros and cons use only those verified facts, as our methodology explains, and third-party ratings are quoted, never scored.

Our verdict

Principal offers 401(k), 403(b), 401(a) and pooled employer plans from start-up to large institutions, plus Simply Retirement by Principal for businesses with fewer than 100 employees; the company was founded in 1879 and is based in Des Moines, Iowa. Simply Retirement starts at $145 a month plus $6 per participant with a TPA, or $185 bundled with a $500 setup fee.

Strengths

Published small-plan pricing
Simply Retirement: $145 a month with a TPA or $185 bundled, plus $6 per participant a month.
Evidence: Starting price per employee: $6/employee/mo
Compliance work included
Simply Retirement provides IRS compliance testing and monitoring, plan documents and participant notices.
Evidence: Compliance testing: Yes
Investment fiduciary
Wilshire Advisors LLC is the 3(38) investment fiduciary for Simply Retirement plans.
Evidence: Fiduciary services: Yes
Plan type range
401(k), 403(b), 401(a), pooled employer, pension, stock and nonqualified plans.
Evidence: Modules: 401(k), 403(b), 401(a), Pooled employer plans, Stock plan solutions, Pension solutions, Nonqualified deferred compensation, Trust and custody

Weaknesses

Fees on top of recordkeeping
Custodial, investment, financial professional and TPA fees are additional.
Evidence: Extra costs: Custodial fees, Investment fees, Financial professional and TPA fees, if applicable
Setup fee for bundled plans
Bundled Simply Retirement plans carry a $500 one-time setup fee.
Evidence: Implementation fee: $500

Price at a glance

Starting base fee
$145/mo
Starting price per employee
$6/employee/mo
Pricing model
Base fee + per employee
Price transparency
Partly published

What Principal Financial Group costs

Principal Financial Group cost at 10 to 100 employees

Simply Retirement by Principal (with a TPA)$145/mo base + $6/employee/mo
Simply Retirement by Principal (bundled)$185/mo base + $6/employee/mo

Estimated list price per month by scenario
Employees	Simply Retirement by Principal (with a TPA)	Simply Retirement by Principal (bundled)
10	$205/mo	$245/mo
25	$295/mo	$335/mo
50	$445/mo	$485/mo
100	$745/mo	$785/mo

Monthly list price before discounts, add-ons and taxes, from the published price model of each plan.

Quick answers

How much does a Principal 401(k) cost?: Simply Retirement by Principal costs $145 a month with a TPA or $185 a month bundled, plus $6 per participant a month; bundled plans add a $500 setup fee.Based on Implementation fee: $500
Does Simply Retirement by Principal require automatic enrollment?: Yes. Employees are automatically enrolled at a default pre-tax rate set by the employer and can opt out.Based on Automatic enrollment: Yes
Which payroll providers work with Simply Retirement?: Ubiquity integrates directly with Paylocity, Namely and dozens of others; ADP, Paychex and QuickBooks work through add-on services.Based on Notable integrations: Paylocity, Namely, ADP (add-on), Paychex (add-on), QuickBooks (add-on)
What plans does Principal offer employers?: 401(k), 403(b), 401(a) and pooled employer plans, plus pension, stock plan, nonqualified deferred compensation, and trust and custody services.Based on Modules: 401(k), 403(b), 401(a), Pooled employer plans, Stock plan solutions, Pension solutions, Nonqualified deferred compensation, Trust and custody

Coverage of core 401(k) providers capabilities

Each core capability we evaluate in 401(k) Providers, checked against Principal Financial Group’s own documentation. “Not verified yet” means we have not confirmed it either way, not that it is missing.

8 verified of 10 core capabilities

401(k) Providers

Plan design and document
Participant recordkeeping
Payroll integration
Investment menu and default investment
Fiduciary services
Compliance testing
Form 5500 support · not verified yet
Automatic enrollment
Participant notices and education
Fee disclosure · not verified yet

Specifications

Fit

Industry focus: Nonprofits, Government, Unions

Product

Modules: 401(k), 403(b), 401(a), Pooled employer plans, Stock plan solutions, Pension solutions, Nonqualified deferred compensation, Trust and custody

Principal Financial Group integrations

Native integrations

Partner and marketplace apps

Principal Financial Group integrations

Principal Financial Group integration coverage

The 4 apps that 401(k) providers products document most often, and whether Principal Financial Group documents each.

3 of the 4 most-connected apps documented by Principal Financial Group; median of the 5 products compared: 2

Gusto · documented by 3 of 5
Paylocity · documented by 3 of 5
Paychex · documented by 2 of 5
QuickBooks · documented by 2 of 5

Integrations each vendor documents (native, marketplace, Zapier or API), 5 live 401(k) providers products. Not documented does not mean not possible.

401(k) Providers

Principal Financial Group alternatives

Implementation and support

Implementation fee: $500
Support channels: Online, Phone, Specialists and financial professionals

About Principal Financial Group

Founded: 1879
Headquarters: Des Moines, Iowa, USA

Official profiles

Principal Financial Group website

All Principal Financial Group products

Principal Financial Group: frequently asked questions

Who is the investment fiduciary on Simply Retirement plans?

Wilshire Advisors LLC acts as the plan’s 3(38) investment fiduciary.

Does Principal handle 401(k) compliance testing?

Yes. Principal lists IRS plan compliance testing and monitoring, along with participant disclosures and annual plan notifications.

What is Principal Financial Group used for?

Principal Financial Group, on the market since 1879, is a 401(k) providers product built for small businesses, mid-market companies, and enterprises. Its modules include 401, 403, 401, Pooled employer plans, and 4 more.

Is Principal Financial Group legit?

Principal Financial Group is sold by the company of the same name, which was founded in 1879 and is headquartered in Des Moines, Iowa, USA.

What are the pros and cons of Principal Financial Group?

Strengths documented on the vendor’s own pages: published small-plan pricing, compliance work included, and investment fiduciary. It is less suited to buyers who need published SOC 2 or ISO 27001 details and large plans that want published prices (they are quoted).

What does Principal Financial Group integrate with?

Principal Financial Group documents integrations, including Paylocity, Namely, ADP, Paychex, and 1 more. Every documented connection: Principal Financial Group integrations.

Is Principal Financial Group good for small businesses?

Principal Financial Group lists small businesses among the company sizes it is built for (small businesses, mid-market companies, and enterprises); for 10 employees its lowest published plan comes to $205 a month. Ranked for that size: 401(k) providers for small businesses.

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