SEP Distribution & Contribution within 60 days

[WTMAcctsv]

Hi,
I have a client that tells me he took out $30k from his SEP on 11/8/2023 but then put it back on 12/22/2023. His understanding is that there are no tax consequences since
the money was returned within 60 days. However, he received a 1099-R (2023) for the distribution of the $30k which was coded "1" as an early distribution. He also received a form
5498 for 2023 which denotes the $30k as a Rollover contribution. The tax software is showing a $3k penalty for the early distribution, I've included the $30K as a SEP contribution.
The client is furious because he is being penalized and feels this shouldn't be shown as a distribution. The client talked to the SEP provider who told him they always send a 1099-R
for the distribution. My question, is there any truth to the 60 day rule and if so, is there something else I should be doing or should the provider not be issuing a 1099-R?

[Lion]

Yes, if the provider knows only that part of the transaction, the distribution, it issues a 1099-R. Or, in your case, also the Form 5498 showing the rollover.

Yes, there is a 60-day rule. Confirm the dates using documents from the provider which you seem to have in hand.

Start here and then dig into the IRC: https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions#:~:text=When%20should%20I%20roll%20o ver,of%20circumstances%20beyond%20your%20control.

Contact your software support to find out how to enter a rollover in your software. Or, tell us what software you use.

[WTMAcctsv]

I'm use ProSeries US Desktop. Do you know how I'd enter the rollover? The client is the only one telling me the dates. There are no dates on the 1099-R or the 5498. Can I still go by his dates?

[WTMAcctsv]

I figured out where to enter the rollover. Since the 1099-R is a rollover, do I still enter the $30k from form 5498 as a SEP contribution? Can I go by the dates the client provided as withdraw and
return to SEP dates?