I was thinking that as long as this is within the 60-day window, it would be moot. As a failed or invalid rollover, asking for corrective action on the excess risks they will keep $7k, though, since that is the contribution limit for the year. That's one thing to be aware of.

The reason it needs to be direct is that there has already been a "1 in 12 month" (she touched the funds in between).