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10769

10769

The following diagnostic is generating:

The taxpayer's Roth IRA contribution is disallowed due to modified adjusted gross income in excess of the threshold amount.

Solution:

If the diagnostic is correct, remove the Roth IRA contribution to comply with the MAGI limits for the tax year.

Click the diagnostic from the Diagnostics tab and remove the entry in Roth IRA Contributions (1 if maximum).

Or navigate to Deductions>Screen 24 Adjustments to income>Roth IRA>Roth IRA Contributions (1 if maximum) and remove the amount.

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Comments

The above diagnostic is generating on a return for an expat client who is using the FTC.  Client has reported wages of $14,736, well under the MAGI limit for a Roth contribution.

I know foreign wages don't count when they are excluded with the foreign earned income exclusion.

Is there perhaps an obscure rule about foreign wages for ROTH MAGI?