Retirement tax questions

Thank you. I am not concerned with the 60 day timeframe.  This was all done in a matter of weeks.  

 

What I am concerned with is if this qualifies as a rollover or not.  Fidelity cashed out his IRA totaling $742.  He received a check for $594, and $148 was withheld for taxes. So at this point we would have a premature distribution and a penalty would apply.

 

BUT he cashed the $594 check, then wrote a check to open a new IRA for $742. 

 

In short, we had what looked like a premature distribution from an IRA with taxes withheld but then reinvested the full amount.  Is that a rollover or considered a premature distribution (with penalty) and a new reinvestment.

 

If a rollover, how do i report that?