Rollover comparison

Principal → Vanguard 401(k) rollover

If you're rolling a 401(k) FROM Principal TO Vanguard, here are the practical mechanics: what forms you'll fill out, how long it takes, whether ACATS is supported, and what specific gotchas to watch for at each custodian. This page documents the process; it does not recommend one custodian over the other.

Side-by-side

Principal vs Vanguard 401(k) rollover comparison
Field	Principal	Vanguard
ACATS eligibility	Paper-based transfers only — typical processing 10–14 business days	ACATS (electronic) eligible — typical processing 3–5 business days
Processing time	10-14 business days; Medallion stamp may be required	5-7 business days (ACATS); 2-3 weeks for paper
Transfer form	Direct Rollover Distribution form (plan-specific)	Move money in — Direct rollover (online wizard)
Customer-service phone	1-800-547-7754	1-800-523-1188 (Personal Investor) / 1-800-523-1036 (Small Business 401(k))
Customer-service hours	Mon-Fri 7am-9pm CT	Mon-Fri 8am-8pm ET

Known pitfalls at Principal

Warning: Principal specializes in small-business 401(k) plans, so rollover forms are highly plan-specific — you can't always download a generic form from the website. Call your former employer's HR to ask which form their plan uses.
Warning: Many Principal plans require a Medallion Signature Guarantee for rollovers over $50K (NOT a notary). Get this in person at a bank you have a relationship with before you start — finding a Medallion provider can take a couple days.
Warning: Principal will sometimes ask the destination custodian to provide a 'Letter of Acceptance' on letterhead. Request this from the destination upfront (they all have a standard form) — saves a callback.

Known pitfalls at Vanguard

Warning: Vanguard's outbound-transfer form is at 'Profile & account settings → Move money out → To another firm'. It's easy to miss — they bury it deeper than other custodians.
Warning: If your 401(k) is at Vanguard Retirement Plan Services (employer plan), the path is different — log into Vanguard.com/retirementplans, not my.vanguard.com.
Warning: Vanguard requires a Medallion Signature Guarantee for transfers over $100K (NOT a notary — a Medallion stamp, typically from a bank you have a relationship with). Get this in person before you start; finding a Medallion provider can take a couple days.

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This comparison is informational only — it documents the procedural mechanics of rolling over a 401(k) between Principal and Vanguard. nesthelm is not an investment adviser or broker-dealer; we do not recommend either custodian over the other. Consult a CPA or licensed financial advisor for advice on your specific situation.