tax penalty on withdrawing from cash reserve account

[ls100]

I want to withdraw some money from my Fidelity Cash Reserve account before Dec. 2001.

If I pay it all back in 90 days, I understand I will not have to pay the tax due on it in April 2002. Is this correct?

Conversely, if I don't pay any of it back before Dec. I am liable for the tax on all of it in April?

If I pay part of it back, do I only pay tax on the remaining amount?

I have already taken money out this year and paid it back, is there a limit to how many times I can make withdrawals in this way?

Lastly, is there a website that I explains all the in and outs of doing this?

 

[ShyCat]

I am assuming that this money market fund is in your traditional (non-Roth) IRA account. Are you less than 59 1/2 years old? If so, you have only 60 days to put the money back into an IRA. Any withdrawn funds that are not returned to this (or another) IRA before 60 days, you will be assessed not only ordinary income tax on the early withdrawal but also a 10% penalty. Your state will also expect state income tax on the withdrawn amount (unless you live in a state without income tax) and may assess an additional penalty of its own. That's what happens when you use retirement funds like short term savings.

www.401k.com is a source of good information.