The present invention is directed to a system and method for reducing the need to perform signal clipping in a DMT transmitter. In accordance with one aspect of the invention, a method performs an inverse Fourier Transform on the input to produce a time-domain, digital value to be transmitted to a remote receiver. The method then evaluates the magnitude of the digital value to determine whether the magnitude exceeds a threshold value. Then, the method alters the input and re-performs an inverse Fourier Transform on the altered input, only if the step of evaluating the magnitude determines that the magnitude of the digital value exceeds the threshold value.