What about my 401k ??

I may be put on permanent disability in a month, I've been on short term dis up to this point for back surgery, I had a 3 level fusion done and can't do what I was doing before..............what do I do? Can I roll some of it into an IRA and take some of it to pay bills, house payments etc? I have 17 years worth of investment in it. What will the penalties be?