Prohibited Transaction?

[Guest h_nowicki]

In 2003 Company XYZ sets up 2 NEW plans (Retirement Plan & 401(k) Plan.

A transfer of rollover balances are made from an old (terminated in 2003) company sponsored plan.

Unfortunatelty the rollover balances for the Retirement Plan are incorrectly deposited into the 401(k) Plan. The next day, the correction is made and the money is transferred into the appropriate Plan.

Does this need to be reported as a Prohibited Transaction on Form 5500 and does the client need to be penalized for the actions of the prior recordkeeper??