$2,100 of $7,000 is 30%, so after subtracting the 10% early-distribution penalty of 10% that leaves 20% to cover ordinary income taxes. That remaining 20% is likely to cover a good part, if not all, of the ordinary income tax liability resulting from this distribution, but there can also be circumstances where your marginal tax rate is higher than your tax bracket rate, say, due to potential loss of certain tax credits as a result of this distribution.
Don't forget about state income taxes.
