The 401k offered by my employer is American Funds. The only funds I can invest in are all class "R-2" with the lowest expense ratio 1.35%. I'm currently in the "Target Date 2050" fund with an expense ratio of 1.53%....
They also offer a 4% match.
I have about 10k in there currently, but I just switched to deferring enough to max out this year. Now I'm not sure if that is the best option. I still plan to max out my Roth IRA regardless (Don't qualify for deduction on traditional IRA).
So the question is, is this high of a fee worth maxing out or should I just get the match, max out Roth IRA and put the rest in low cost index funds with Vanguard?
I want to talk to our plan administrator about them offering lower cost funds, but not really sure how to present it and what their response would be. I'm assuming employers choose these high cost funds to avoid any flat advising fees?
Thanks in advance!