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Foreign profit sharing is a strategic tool for business owners to reduce taxes and enhance savings through retirement plans. This tutorial focuses on three main types of employer contributions: match contributions, safe harbor contributions, and profit share contributions. Profit sharing allows business owners to contribute up to the IRS maximum of $64,500 per year, with these contributions being tax deductible and growing tax deferred. Its discretionary nature gives business owners the flexibility to decide annually on contributions and amounts. Additionally, profit sharing features a six-year vesting schedule for employees.