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Foreign profit sharing is a strategic tool enabling business owners to reduce taxes and enhance savings through retirement plans. There are three types of employer contributions: match contributions, safe harbor contributions, and profit sharing contributions. Profit sharing allows for flexible contributions up to the IRS limit of $64,500 per year, which are tax-deductible and grow tax-deferred. This type of contribution is discretionary, allowing business owners to decide annually whether and how much to contribute. Additionally, it features a six-year vesting schedule, providing further benefits for business owners.