My company allows us to contribute $20,000 after tax through Fidelity and option for roth ira conversion right away. Wouldn't it make more sense to max after-tax contributions to take advantage of my company funds' very low expense ratios? As oppose to investing through my individual roth ira / brokerage account? Also, does it matter If I convert the after-tax contributions to my Vanguard or Fidelity Roth IRA?
I'm not understanding my plan information so I hope I can get clarification. Thank you in advance!
In-plan Conversion - Roth 401(k):
401(k) Plan offers investments with very low expense ratios. The average investment expense for our participants is 0.27% while the industry average for other large Plans is 1.08%
Out of plan Conversion - Roth IRA
Investments are available through your IRA custodian. In general, you will not have access to the same low-cost fee structure that is available in the X 401(k) Plan.