I need to withdrawl $ from my 401K to pay for college expenses - my plan will automatically take fed and states taxes - will I have to pay a penalty or should I take the withdrawl - put it into an IRA and then withdrawl it?

The law does permit a hardship withdrawl for paying tuition. If you plan allows hardship withdrawals, you would avoid the 10% penalty, but not the tax liability.

P.S. please do not cross post.