| Course | FIN 350 Advanced Personal Financial Planning |
|---|---|
| Module | Module 6 |
| Paper type | undergraduate discussion post on household tax planning |
| Length | About 360 words, 3 pages |
| Format | APA 7 student paper |
| School | Southern New Hampshire University |
| Program | BS Finance |
| Updated | October 2026 |
Free sample paper for FIN 350 Module 6
Module Six Discussion
Four Tax Moves for the Kesslers
The composite Kesslers' combined income of about $263,000 puts them in the 24 percent federal bracket, with Nebraska's 2025 top rate of 5.2 percent on top, so each dollar of deduction saves about 29 cents. Dario's company is an S corporation: he takes a $95,000 salary and about $30,000 of profit. Here are four moves.
First, Hannah should raise her 401(k) deferral from 8 percent, about $11,000, toward the 2025 limit of $23,500 over two years. Each added $1,000 saves about $290 in current taxes, and the money is withdrawn later, ideally in retirement years when their bracket may be lower.
Second, Dario's company should replace its SEP-IRA with a safe harbor 401(k). A SEP requires equal percentage contributions for eligible employees, which is why Dario has kept his small. A 401(k) lets him defer salary like any employee and gives his twelve workers a way to save, with a required employer contribution that also helps recruiting.
Third, his salary should stay reasonable for an owner who runs crews and sales, since the IRS can recharacterize distributions if the salary is too low. The remaining profit qualifies for the business income deduction of up to 20 percent, which the 2025 tax law made permanent.
Fourth, every dollar they put into the children's 529 accounts, up to the state's annual cap for a joint return, comes off their Nebraska taxable income. At the staged contribution level in our education plan, about $13,000 a year by 2027, they would use the full cap.
Chetty et al. (2014) found in Danish data that most people do not respond to retirement tax subsidies at all, and those who do mainly shift money from other accounts; automatic employer contributions raised total saving far more. Madrian and Shea (2001) showed that automatic enrollment sharply raised 401(k) participation. For the Kesslers, the real gain may come less from the tax savings than from making larger contributions automatic, ideally with scheduled increases built in from the start (Thaler & Benartzi, 2004).
If a tax break mostly moves savings rather than creating them, should planners still recommend it, and why?
References
Chetty, R., Friedman, J. N., Leth-Petersen, S., Nielsen, T. H., & Olsen, T. (2014). Active vs. passive decisions and crowd-out in retirement savings accounts: Evidence from Denmark. The Quarterly Journal of Economics, 129(3), 1141-1219. https://doi.org/10.1093/qje/qju013
Madrian, B. C., & Shea, D. F. (2001). The power of suggestion: Inertia in 401(k) participation and savings behavior. The Quarterly Journal of Economics, 116(4), 1149-1187. https://doi.org/10.1162/003355301753265543
Thaler, R. H., & Benartzi, S. (2004). Save more tomorrow: Using behavioral economics to increase employee saving. Journal of Political Economy, 112(S1), S164-S187. https://doi.org/10.1086/380085
What the FIN 350 Module 6 instructions ask for
The Module Six discussion in FIN 350 usually focuses on tax planning: how taxes affect a client's plan and which strategies reduce them legally. Prompts may ask about tax-advantaged retirement accounts, the choice between traditional and Roth contributions, deductions and credits for families, education accounts or tax issues for self-employed clients. Some ask you to apply strategies to the course client or to your own situation. The best posts propose a few specific moves, show roughly what each saves, check them against current limits and rules and acknowledge trade-offs. A focused initial post with a cited source works better than a broad survey, and replies can test whether a classmate's move fits the client.
How this FIN 350 Module 6 discussion example is built
The sample recommends four moves for the composite Kesslers. Hannah raises her 401(k) deferral from 8 percent to the $23,500 limit over two years, saving about 29 cents of federal and state tax on each added dollar. Dario's company replaces his SEP-IRA with a safe harbor 401(k), letting him defer salary like an employee and offering his twelve employees a plan they can contribute to. His S corporation salary stays at a reasonable level for the work he does, with the rest of the profit eligible for the qualified business income deduction. Their 529 contributions earn Nebraska's state deduction. It asks whether these breaks create new saving or just move it.
Where the FIN 350 Module 6 rubric puts the points
The discussion rubric usually rewards accurate application of tax concepts, use of current rules and limits, practical recommendations for a client, use of sources and engagement with peers. Strong posts name specific accounts, deductions or credits, quantify savings roughly and note conditions or risks, such as reasonable salary rules for S corporation owners. Weaker posts describe tax brackets generally, cite outdated limits or recommend moves that do not fit the client's income or business. Replies earn credit when they check a classmate's figures or point out a rule, such as an income phaseout, that changes the answer. Instructors often look for at least one dollar estimate, since tax planning is easier to judge when the savings are shown.
FIN 350 Module 6 help: the mistakes that cost points
The usual weakness in tax discussions is a lecture on how brackets work. Instead, choose two to four moves for a specific client and show what each is worth in dollars, using the client's marginal rate. Check every limit against the current year, since many change annually and some changed under the 2025 tax law. For business owners, be careful with rules on owner salaries, plan coverage for employees and the business income deduction's limits. Mention one trade-off, such as giving up flexibility by locking money in retirement accounts. Then raise a question that makes classmates think about behavior, since the course keeps returning to how people actually respond to incentives.
Get FIN 350 Module 6 written to your instructions
Share the FIN 350 Module 6 discussion prompt and your client's tax facts. We suggest concrete moves under current rules, show the savings in dollars and close with a question about how tax breaks change behavior. About two days; first post free. The paper above is an original model document written by our desk, not a submitted student paper and not an official Southern New Hampshire University document.
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FIN 350 Module 6 questions, answered
Where can I find a free FIN 350 Module 6 Discussion sample?
The full FIN 350 Module 6 post is on this page: four tax moves for a pharmacist and a small-business owner, with a question on whether tax breaks change saving.
What is the 401(k) contribution limit for 2025?
Employees can defer up to $23,500 in 2025, with an additional catch-up contribution for those 50 and older.
What is the qualified business income deduction?
A deduction of up to 20 percent of qualified income from pass-through businesses such as S corporations, subject to income-based limits; it does not apply to the owner's salary.
What is a safe harbor 401(k)?
A 401(k) in which the employer makes a required matching or nonelective contribution for employees, which exempts the plan from certain nondiscrimination tests and lets owners defer fully.
Do tax breaks make people save more?
Evidence suggests they mostly move existing saving into tax-favored accounts, while automatic features such as default enrollment raise total saving more.