Son received proceeds from IRA with taxes withheld. He missed a notice and wanted to rollover. Can he rollover by opening IRA with amount of the check plus withholding?

Say the check was $500 plus they withheld $200. If he deposits $700 in a new IRA, can he avoid the penalty on early withdrawal from the first IRA.

He wanted to rollover but missed the notice from Fidelity that his IRA from previous employer was below minimum balance so would be cashed out.