IRA to 401K rollover

Technical topics regarding tax preparation.
#1
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a small business client maintains a 401k plan. He was planning to make a $8000 employee salary deferral contribution to the 401k plan. However when making the contribution he did not explain adequately to the brokerage house that this was a salary deferral to the 401k plan and they told him he was limited to a $6500 contribution to his IRA. He incorrectly made the contribution into his IRA account. When he realized the error he withdrew the IRA contribution (all of this happened within a two week period) . He made a small amount of income on the contribution ($35) during this period and he will receive a 1099-r for the distribution. He then contributed $8000 into his 401K as a salary deferral. Can he consider this to be a replacement of the distribution within the 60day period?
 

#2
Nilodop  
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https://www.thetaxadviser.com/issues/20 ... ic-05.html

https://www.dlapiper.com/en/us/insights ... -doctrine/

But I'm not sure whether rescission can be applied w/o a ruling. I think it can be.
 

#3
Doug M  
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https://www.irs.gov/pub/irs-pdf/p590a.pdf

Page 32. See section titled "Contributions Returned Before Due Date of Return"

I am unsure if he contributed $8,000 or $6,500. If it was $8,000, shame on the custodian.
 


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