Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Is there a code to have program compute the maximum deductible IRA contribution for input into the return, rather than the maximum allowable contribution?

Ed-Houston
Level 2

UltraTax has two codes for calculating the amount a taxpayer can/will contribute to their IRA. Similar to Lacerte, one can calculate the maximum amount that can be contributed but that includes amounts that would be nondeductible under certain circumstances. The second option in UT calculates and limits the contribution to the amount that is deductible. Since many clients only want to contribute the amount that is tax deductible, the latter option makes it is easy and straightforward way to advise the client how much to contribute, no matter how often other amounts in the return change that could impact the calculation. It also avoids having to change the input screen once the final deductible contribution amount is determined to avoid an 8606 from getting generated. Is there a workaround to having Lacerte show only the deductible amount as the contribution?

0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Comment 1
Accountant-Man
Level 13

Enter. View. Remove excess amount. Done.

** I'm still a champion... of the world! Even without The Lounge.
0 Cheers