Early Withdrawal

Question: Taxes on a 401k withdrawal question?

I was recently terminated and on our company website it is giving me the option to withdrawal my 401k.. Its not a huge amount so I dont want to go through the trouble of rolling into IRA.. My question is this: I know that it is taxed 20% + 10% fee etc, but I am wondering if that amount is taken out and they send you the rest, or do they send you the lump sum and you are responsible for paying the taxes on it come year-end..?
Ok, very good info, but my question is a bit more specific: Lets just ASSUME I have $1000 available to withdrawal, and lets ASSUME it gets taxed 50%.. The question is will I get a check for $500, or will I get a check for $1000, but be subject to the $500 tax at the end of the year..?

Answer: You will be responsible for the 10% penalty.

As for the regular tax, the difference between the withholding and your actual tax will be either your responsibility (if actual is more) or overpayment (if withholding is more).

Also note you will be assessed tax on state and local level, if applicable. Generally withholding is not automatically done on the state and local level.

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