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Foreign profit sharing is a strategic tax-saving tool for business owners, particularly in retirement plans. There are three main types of contributions: match contributions, safe harbor contributions, and profit share contributions. Profit sharing allows business owners to save up to the IRS maximum of $64,500 annually, which is tax-deductible and grows tax-deferred. This method is both discretionary and flexible, as business owners can choose whether and how much to contribute each year. Additionally, it has a six-year vesting schedule, providing a beneficial structure for long-term savings and tax management.