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Foreign profit sharing is a strategic tool for business owners to reduce taxes and enhance savings, particularly through retirement plans. There are three main types of employer contributions to such plans: match contributions, safe harbor contributions, and profit sharing contributions. This summary focuses on profit sharing, which is a flexible contribution option allowing business owners to save up to the IRS limit of $64,500 annually. These contributions are tax-deductible and grow tax-deferred. Profit sharing is advantageous for business owners due to its discretionary nature, allowing them to determine yearly contributions. Additionally, it includes a six-year vesting schedule for participants.