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Foreign profit sharing serves as a strategic tool for business owners to reduce taxes and enhance savings. This profit-sharing plan, particularly relevant to retirement plans, includes three main types of employer contributions: match contributions, safe harbor contributions, and profit churn contributions. Profit sharing is a flexible contribution method, allowing business owners to save up to the IRS maximum of $64,500 annually, with contributions that are tax-deductible and grow tax-deferred. Its discretionary nature means business owners can choose whether and how much to contribute each year. Additionally, it features a six-year vesting schedule, providing a structure for employee ownership over time.