The 20% is the mandatory amount of withholding but you can request more to be withheld. The 20% is withholding, not the tax, which can be more or less depending on your tax bracket and other income.
The distribution is taxed as ordinary income taxed at whatever your marginal tax rate is and the early withdrawal penalty is calculated separately.
General Tax Bracket Info for 2019 - For the tax year 2019, the top rate is 37 percent for individual single taxpayers with incomes greater than $510,300 ($612,350 for married couples filing jointly). The other rates are:
- 35 percent, for incomes over $204,100 ($408,200 for married couples filing jointly);
- 32 percent for incomes over $160,725 ($321,450 for married couples filing jointly);
- 24 percent for incomes over $84,200 ($168,400 for married couples filing jointly);
- 22 percent for incomes over $39,475 ($78,950 for married couples filing jointly);
- 12 percent for incomes over $9,700 ($19,400 for married couples filing jointly).
- The lowest rate is 10 percent for incomes of single individuals with incomes of $9,700 or less ($19,400 for married couples filing jointly).
Your tax bracket is only one factor in determining marginal tax rate. Other things such as tax credits and the taxability of Social Security income can be affected by AGI that will also have an impact on the marginal tax rate.
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