Common 5500 Benefit Plan E-file Rejections in Lacerte

Reject code: SIGNATURE

This rejection states:

• [UNPROCESSABLE] THE FILING YOU WERE ATTEMPTING TO SUBMIT WAS NOT RECEIVED BY THE GOVERNMENT. Required signatures are blank or invalid. Please correct the problem and attempt your filing submission again. If you need assistance resolving this problem, contact your software provider or the EFAST2 helpdesk (1-866-463-3278).

This e-file reject occurs because the information in Lacerte needs to match the information on the DOL's EFAST2 website as well as the Intuit Signature website.

Check the Signer's Profile:

• If any of the signers have an expired password, this rejection may occur. Have the signer log into the Department of Labor (DOL) to help ensure their password is up to date
• Have the signer make sure their information on the DOL website matches the information they entered when signing the return
• Make sure Filing Signer is checked 
• Double-check the PIN supplied by the DOL is the same as the PIN they entered when signing the return
• Check entries on Screen 4 - Electronic Filing:
  • Each signer is only included once. If a signer is signing as both an administrator and sponsor, list them as administrator.
  • The name in Individual signing return must match the name for the DOL login for that person, spouses aren't interchangeable.

Note: Lacerte customer support is unable to check or update the information on the DOL's website. If after verifying all of the above information is correct in both Lacerte and the signer's profile, please contact the DOL help desk at 866-463-3278.

Reject code: P-407

This rejection states:

• [ERROR] Error: Form 5500, Line 6g (number of participants with account balances as of the end of the plan year) cannot be blank when Line 8a contains "2x" indicating a Defined Contribution plan, Line 6d reports one or more participants at the end of the year and Schedule H, Line 1f (Total Assets EOY) or Schedule I, Line 1a(b) (Total Assets EOY) is greater than zero.

To populate the amount on line 6g:

1. Cancel the signature and Unlock the return
   • Due to the existing signature, the client will be locked, and unable to be changed.
   • After canceling the signature, you will be able to unlock and correct the return
   • After the return is corrected, a new signature will be required to e-file the corrected return.
2. Go to the Detail tab for the client
3. Go to Screen 6, Employee Benefit Plan (5500, Sch. MEP)
4. In the Plan and Participant Information section, locate the Number of Participants at End of Plan Year heading
5. Enter the Participants with account balance at beginning of plan year and Participants with account balance at end of plan year fields.

Reject code: I-207SF

This rejection states:

• [WARNING] Warning: If you have a one-participant (owners/partners and their spouses) retirement plan, file the Form 5500-EZ instead of the Form 5500-SF. Review 'Who Must File Form 5500-EZ' in the Form 5500-EZ instructions to determine whether you should file the Form 5500-EZ. Note that the Form 5500-SF generally is subject to public disclosure on DOL's website while the 5500-EZ is not.

To remove Form 5500-SF from the return:

1. Cancel the signature and Unlock the return
   • Due to the existing signature, the client will be locked, and unable to be changed.
   • After canceling the signature, you will be able to unlock and correct the return
   • After the return is corrected, a new signature will be required to e-file the corrected return.
2. Go to the Detail tab for the client
3. Go to Screen 7, One-Participant Plan (5500-SF/5500-EZ)
4. Uncheck the 5500-SF(Mandatory) box
5. Review the return for accuracy, including clearing any new diagnostics.

Reject code: Z-001

This rejection states:

• The EIN, Plan Number, Form Year and Plan Year Ending dates on this filing submission match a previous filing submission and therefore may be a duplicate submission. If you are attempting to amend a previous submission, please select "an amended return/report" on Line B of the Form 5500 or Form 5500-SF. If a duplicate was submitted in error, no further action is needed, but try to avoid duplicate submissions in the future.

If the filing is for another plan for the same company, the Plan Number needs to be updated:

1. Cancel the signature and Unlock the return
   • Due to the existing signature, the client will be locked, and unable to be changed.
   • After canceling the signature, you will be able to unlock and correct the return
   • After the return is corrected, a new signature will be required to e-file the corrected return.
2. Go to the Detail tab for the client
3. Go to Screen 1, Client Information
4. Go to the Plan Information section
5. Update the Three-digit Plan Number (PN)

If the filing should be an amended filing:

1. Cancel the signature and Unlock the return
   • Due to the existing signature, the client will be locked, and unable to be changed.
   • After canceling the signature, you will be able to unlock and correct the return
   • After the return is corrected, a new signature will be required to e-file the corrected return.
2. Go to the Detail tab for the client
3. Go to Screen 3, Miscellaneous Information
4. Go to the Amended Return/Report section
5. Enter a 1 in the 1=amended return/report field
6. Enter the Acknolwedgement ID from the original filing in the e-File only: Acknowledgement ID field
   • If the original return was e-filed in Lacerte, you can select the client and press F4 to open the Client Status window. Then go to the e-file status tab. The Acknowledgement ID can be copy and pasted.