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Foreign profit sharing is a strategic tool for business owners to reduce taxes and enhance savings. It specifically refers to a type of retirement plan that includes three main types of employer contributions: match contributions, safe harbor contributions, and profit-sharing contributions. Profit sharing allows business owners to contribute flexibly, up to the IRS maximum of $64,500 per year, with contributions being tax-deductible and growing tax-deferred. This approach offers discretion, as business owners can choose whether and how much to contribute each year. Additionally, it features a six-year vesting schedule for employee benefits.