Withdrawal penalty vs tax. (Roth)

[Pocketchangecc]

This has puzzled me for years.

When you take a withdrawal from a traditional IRA, I know there is a 10% penalty before an age, in addition to the taxes you have to claim as income for your particular state or for the federal government.

However, if you pay a portion or all of that back does the penalty still apply and if so does it occur on the full amount that you've taken out or only to the portion of the original withdrawal yet to be repaid?

Which forms do you use or how do you express when filing that the full amount or portion of the amount withdrawn has been repaid?

Thanks!

[leeloo]

If you roll the funds back in within 60 days, you will not have a penalty. You have to indicate the rollover on your return. There is no other method of paying it back. You can continue to make contributions from those funds, but that is not the same as paying it back. 

[DanaB27]

Yes, if you take a distribution from your traditional IRA before 59 1/2 then you have to pay the 10% early withdrawal penalty unless you qualify for an exception.

No, if you pay back the funds within 60 days then this is considered a rollover and this is not subject to the 10% early withdrawal penalty. Please see Rollovers of Retirement Plan and IRA Distributions for additional information.

You will enter the Form 1099-R and indicate in the follow-up questions that this was a rollover (if the code in box 7 doesn't indicate it was a direct rollover):

1. Click "Federal Taxes" on the top and select "Wages & Income"
2. Click "I'll choose what to work on"
3. Scroll down and click "Start" next to "IRA, 401(k), Pension Plan (1099-R)" 
4. Answer "Yes" to the question "Did You Have Any of These Types of Income?"
5. Enter Form 1099-R
6. Continue "Tell us if you moved the money through a rollover or conversion" and select "I rolled over some or all of it to an IRA or other retirement account within the time limits (normally 60 days)"
7. Continue answering the questions.

[VolvoGirl]

If you roll it back in within 60 days it is not taxable.  The Early Withdrawal Penalty for under 59 /12 will be only on the taxable amount.  After you enter the 1099R withdrawal it will ask what you did with it.  You say you moved it into another account even if you put it back into the same account.