Should I cash out on my 401k?? (please read)?

So I quit my job and stopped my 401k.. I had about $1500 in it.. and now I have the option to cash it out or roll it over. Seeing as to I don't plan on getting another job due to personal reasons I don't have a need or want to roll it over. I could see if it was more or if I was older or something (I'm 23 btw). I know there is taxes and penalty charges but do they just come out of that amount and I just get a lump sum? or do I get taxed at the end of the year when I go to do my taxes? Should I just go ahead and cash it out since it's not some grand amount? Thanks for your help!