The amount is $36,000.00. The holding company withheld $7,200.00 for the IRS.

Is the entire amount of $36,000.00 still a taxable amount?
Does the 10% early withdrawal penalty come of the taxable amount, and now the taxable amount is $32,400.00?

Is the taxable amount the total after the 20% withheld by the holding company sent to the IRS, $28,800.00?

Please clarify.

Schuttpelz:

The entire $36,00 will be taxed as ordinary income.

Further, a 10% early withdrawal tax will be assessed, and that 10% cannot be mitigated by deductions, credits or exemptions. This means that you will pay at least $3,600 in taxes.