An IRA can hold any kind of investment, from individual stocks to mutual funds to ETFs. It sounds like you first need to determine whether the money is in a brokerage account or an IRA.
If the money is in a IRA, then you have an indirect rollover. However, if you only deposited $640, the amount after tax, then you have a $640 rollover and a $120 withdrawal, which will be subject to income tax plus a 10% penalty. If the money went into a brokerage account, then the entire $800 withdrawal is taxable and subject to a 10% penalty because it is not a rollover. However, in the future, if you sell or cash out the brokerage account, you will only pay income tax on the gains instead of the entire amount.
