what means " lived off her 401 (k) retirement and profit-sharing accounts."??

Question

lived off  - ???401 (k) retirement -??????? profit-sharing accounts - ????

AlpheccaStars · Accepted Answer

When someone is retired, and does not have a salary, they use money from what they saved when they were working.
They live off of their savings.

A 401 (k) plan is a retirement savings account allowed by the United States government tax code.
When someone has a job with a company, they can put part of their salary in this account. The company also puts money in the account. (The company shares their profits with their workers). So when they retire, the money is in the account for their needs.

Example:
Joe earns $1000 a month. He puts 5% in the 401 (k) account. The company matches (profit sharing). So he now has $100 per month, or $1200 per year in savings. But the money is invested and earns interest. For example, if Joe works 30 years, and the money earns 6% interest, he will have over $100,000 in the account.

http://www.math.com/students/calculators/source/compound.htm

what means " lived off her 401 (k) retirement and profit-sharing accounts."??

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