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Foreign profit sharing is a strategic tax-saving tool for business owners, particularly related to retirement plans. There are three main types of contributions: match contributions, safe harbor contributions, and profit share contributions. This summary focuses on profit sharing, which allows business owners to contribute up to $64,500 annually, with contributions being tax deductible and growing tax-deferred. Profit sharing is advantageous due to its discretionary and flexible nature, allowing owners to determine each year whether and how much to contribute. It also features a six-year vesting schedule for employees.