I am 55 yrs old and have lost my job. I need to use the money in my 401k to survive. What is the penalty for doing this?

Anything you withdraw from your 401k will be fully taxable at your ordinary income tax rate plus a 10% penalty. You may be able to avoide the penalty under these circumstances:

If your plan allows you to take a loan

If you can replace the funds within 60 days

If you roll the 401k into an IRA then use Rule 72T to take the withdrawal.