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Foreign profit sharing is a strategic method for business owners to reduce taxes and enhance savings, specifically related to retirement plans. There are three primary types of employer contributions: match contribution, safe harbor contribution, and profit churn contribution. Profit sharing is a flexible option allowing business owners to save up to $64,500 annually, with contributions being tax-deductible and growing tax-deferred. Its discretionary nature enables business owners to determine annually whether and how much to contribute. Additionally, it features a six-year vesting schedule, determining employee ownership of benefits over time.