How do I get rid of a incorrect diagnostic? The client did a direct transfer of a ROTH account . Box 1 is $70,731 taxable amount box 2 is $0, Code is H for direct rollover. The critical diagnostic says the client made excess contributions ( which they did not) and wants me to add income to the return. BUT when I put the same data into another clients return I did not get this diagnostic. How do I get rid of it or do I submit by overriding the diagnostic and hope there are no issues? This is just one of many problems I have had so far this year with Lacerte software!
Solution: Please review the input on screen 10, Wages to see if there's anything in Box 12 for retirement codes. Ensure this information does not exceed the contribution limit, as well as matches the W-2. Also check screen 24, Adjustment to Income to see if any ROTH entries have been made that are causing it to go over the limit.
