Can I deposit "outside" money to my 401k?

Question

By outside I mean money from earned from inheritance. My 401k is a benefit from my employer that also matches my amount up to 4%.

thanks

Answer 1

In a word no. You can only contribute money directly from your wage earnings.

Answer 2

SDD is right.  401k money is pre-tax and is pulled directly from your salary.

You are far, far better off to put inheritance money in a Roth IRA.  A Roth is funded with after-tax money so you don't pay income tax on the funds when they're withdrawn AND the interest is tax free.  

In short, a Roth is far superior to a standard IRA.  The only thing that makes a 401k better is the employer matching.

Answer 3

The above is right.

However, you can probably better afford to contribute more of your salary to your 401k if you want to and aren't already at the limit.  In 2008 the individual contirbutions are capped at 15,500.

Answer 4

No.  a 401(k) can only get deposits through your employer. You could, if you are eligible, open a Roth IRA and contribute to that.