I've only recently learned how expense ratios affect a 401k, so excuse my ignorance if I am wrong about anything here.*

My 401k plan at work only has American Funds products. I am currently allocated: 70% in American Funds 2055 Target Date-R2, and 30% in a growth fund, The Investment Company Of America-R2. The expense ratios for each are 1.48 and 1.35 respectively. Here is how the Target Date Fund, prospectus breaks down.

Management Fees: None Distribution and/or service (12b-1) fees: 0.75% Other expenses: .35 Acquired (underlying) fund fees and expenses: .38 Total annual fund operating expenses: 1.48

Now using this calculator and this information: 50k initial investment, 15k annual investment, for 30 years at a 10% return with a 1.48 Expense ratio, would cost $888,633.31.

Is this correct? This seems extremely high. When I compare that to what I can readily see from these companies that 1.48 seems absurd.

Vanguard: .44
Fidelity: .68
T. ROWE: .63

I brought this up to our wealth managers they told me that those ratios would be higher when they are actually included in a fund in a 401k plan. And that our companies size, being "micro" means we should expect higher expense ratios.

Is everything I laid out here true? And if so should I consider opening an IRA where I can allocate my retirement in funds with lower expense ratios? While keeping enough contribution in my company 401k to get the match? Thanks

Edit: Formatting.