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Mistaken contribution to SEP IRA


pompton
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An employer sponsors a SEP IRA. An automatic draft had been set up to have funds moved from the employer business account into the SEP IRA. The employer advised the bank to stop the draft, but the bank did not do so timely. As soon as the employer noticed the transfer, the funds were requested to be returned to the employer from the SEP IRA. This was within one week's time. The SEP investment provider is issuing a Form 1099 with a premature distribution code. While I know the employer can look to the bank for redress, I am wondering if anyone has ideas on how to or experience with the Service to request a waiver of the distribution and/or penalty for this "mistaken" contribution which was returned. Is there a correction program which addresses this type of problem? This happened more than 60 days ago. Any help is appreciated.

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