@b0075001 - the portion you are putting back is not 'fully taxed'. it was the tax itself, presuming you didn't roll over the original amount.
let say there is $10,000 to be rolled over. it is all pre-tax money.
the trustee sends you a check for $8,000 and sends $2,000 to the IRS
you have NOT reported the $10,000 on your tax return, so it is all 'pre-tax'.
you send $10,000 to the new trustee within 60 days - still haven't reported it on a tax return, so it all remains "pre-tax"
your 1099-R shows $2,000 withholding, which in effect increases your refund on your tax return. it was NOT taxed nor reported as income leading up to Line 11 (AGI) of your 1040 tax return.
nothing was "fully taxed". 😀
