Principal Financial Group Review
Principal runs 401(k), 403(b), 401(a) and pooled employer plans. Its online Simply Retirement 401(k), for businesses under 100 employees, costs $145 a month with a TPA (TPA fees extra) or $185 bundled, plus $6 per participant.
- Company size
- Small businesses, mid-market companies, enterprises2
- Pricing model
- Base fee + per employee1
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
- Large plans that want published prices (they are quoted)
How we evaluated Principal Financial Group
This review rests on the 14 facts this page shows, each checked against the source listed under “Sources”, most recently on . We did not test the product hands-on: the score uses only those verified facts, as our methodology explains; third-party ratings, where we quote them, never count in the score.
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, whose fees are extra, 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/mo1
Compliance work included
Simply Retirement provides IRS compliance testing and monitoring, plan documents and participant notices.
Evidence: Compliance testing: Yes1
Investment fiduciary
Wilshire Advisors LLC is the 3(38) investment fiduciary for Simply Retirement plans.
Evidence: Fiduciary services: Yes1
Plan type range
401(k), 403(b), 401(a) and pooled employer plans, from simple start-up plans to complex plans for large institutions.
Evidence: Modules: 401(k), 403(b), 401(a), Pooled employer plans2
Weaknesses
Fees on top of recordkeeping
Custodial, investment, financial professional and TPA fees are additional.
Evidence
Extra costs: Custodial fees: charged on top, amount not published (see the plan's fee disclosure), Investment fees: charged on top, amount not published (see the plan's fee disclosure), Financial professional and TPA fees: charged by them, if the plan uses them3
Setup fee for bundled plans
Bundled Simply Retirement plans carry a $500 one-time setup fee.
Evidence: Implementation fee: $5003
Price at a glance
Principal Financial Group cost at 10 to 100 employees
- Simply Retirement by Principal (with a TPA, TPA fees extra)$145/mo base + $6/employee/mo
- Simply Retirement by Principal (bundled)$185/mo base + $6/employee/mo
| Employees | Simply Retirement by Principal (with a TPA, TPA fees extra) | Simply Retirement by Principal (bundled) |
|---|---|---|
| 10 | $205/mo | $245/mo |
| 25 | $295/mo | $335/mo |
| 50 | $445/mo | $485/mo |
| 100 | Not offered | Not offered |
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 (TPA fees extra) or $185 a month bundled, plus $6 per participant a month; bundled plans add a $500 setup fee.Based on Implementation fee: $5003
- 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: Yes1
- 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)1
- What plans does Principal offer employers?
- 401(k), 403(b), 401(a) and pooled employer plans; for businesses with fewer than 100 employees, Simply Retirement by Principal offers a 401(k) set up online.Based on Modules: 401(k), 403(b), 401(a), Pooled employer plans2
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
Specifications
Principal Financial Group integrations
Partner and marketplace apps
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
- Paychex · documented by 3 of 5
- Paylocity · documented by 3 of 5
- QuickBooks · documented by 2 of 5
Integrations each vendor documents (native, marketplace, Zapier, API or named by the vendor), 5 live 401(k) providers products. Not documented does not mean not possible.
Principal Financial Group alternatives
Betterment at Work90% similar
Fidelity Workplace Investing90% similar
Human Interest90% similar- Vanguard Workplace Solutions90% similar
Empower80% similar
Paychex Retirement Services80% similar
Implementation and support
About Principal Financial Group
Official profiles
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?
Employers use Principal to run workplace retirement plans, with plan services from simple start-up plans to complex plans for large institutions; Simply Retirement by Principal lets a small business set up a 401(k) online.
Is Principal Financial Group good for small businesses?
Simply Retirement by Principal is built for businesses with fewer than 100 employees. For 10 employees it lists at $245 a month bundled, plus a $500 setup fee, or $205 a month with a TPA, whose fees are extra; custodial and investment fees come on top.
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 large plans that want published prices (they are quoted).
What does Principal Financial Group integrate with?
Documented examples include Paylocity, Namely, ADP, Paychex, and QuickBooks. Every documented connection: Principal Financial Group integrations.
How this page was made
What it is built from
14 verified facts, each checked against the vendor's own pages or another primary source, most recently on Oct 24, 2026.
Method
Scored and compared with the LeadChange methodology, version 1.5. Read the methodology
Independent review
Passed our independent review on Nov 6, 2026. How we review
Hands-on testing
We have not tested Principal Financial Group hands-on: this page uses public information only.
Who made it
The LeadChange Research Team, following a written research process. No named expert has reviewed this page. About us
Independence and errors
Who pays us never changes a score or a rank. If something here is wrong, tell us and we correct it publicly. Request a correction
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Principal Financial Group
What changed
FeaturesWe no longer list Stock plan solutions, Pension solutions and 2 more in Principal Financial Group’s modules.
PublishedFirst published.
Sources
The 8 pages this page's facts come from. The date beside each is our last check of the facts taken from it (the oldest, when they differ). The numbers beside the figures above link here.
Quotes from the sources
- Principal simplyretirement.com/business-owners/why-simply-retirement“There’s a one-time startup fee of $500 for bundled plans, a monthly recordkeeping fee as low as $145 ($435 billed quarterly), and a $6 monthly fee per participating employee.” “Ubiquity supports direct integrations with dozens of payroll providers, including Paylocity and Namely.”
- Principal principal.com/businesses/protect-my-employees/retirement-plans/401k-403b-plans“From simple start-up plansto complex plans for large institutions, you can be confident that we have plan services to fit what you’re looking for” “Whether you have a traditional 401(k) plan, or another plan type like a 403(b), 401(a) or pooled employer plan, you can be sure of our commitment to you and your employees.”
- Principal simplyretirement.com/business-owners“Custodial fees, investment fees, and financial professional and TPA fees (if applicable) are additional.” “One-time setup fee for bundled plans”
- Principal principal.com/about-us/our-company/profile-and-offerings“We were founded in 1879 as an insurance company.”
- Principal principal.com/finpro/retirement/small-business-retirement-plans“Principal Life, and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392.”
- Human Interest humaninterest.com/pricing“Move between Essentials, Complete, and Concierge at any time as your needs change.”
- Betterment betterment.com/work/pricing“We offer several tiers to fit your needs. From starter plans to full service, explore which one is right for you.”
- Fidelity Investments fidelity.com/retirement-ira/small-business/401k-plans“$100 monthly fee”