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Foreign profit sharing is a strategic tool for business owners to reduce taxes and enhance savings. It primarily relates to retirement plans, with three main types of employer contributions: match contributions, safe harbor contributions, and profit sharing contributions. Profit sharing allows business owners to contribute up to the IRS maximum of $64,500 yearly, and these contributions are tax-deductible and grow tax-deferred. Its discretionary and flexible nature enables business owners to determine whether and how much to contribute each year. Additionally, there is a six-year vesting schedule associated with these contributions.