I just had twins (naturally conceived) and quit my job to stay at home with them. I was a teacher in a private school so 1) it was not worth it to keep working and pay for 2 babies in childcare 2) I would rather raise my own children. We have gotten hit with a lot of bills from my insurance company. Long story short, I basically got screwed at open enrollment time, which was partially my fault. I am under my own insurance and hubby has his own because it was cheaper. I have appealed and lost of course. We don't have the money to pay these bills. I don't want our credit ruined as it is good. My retirement is small while my husband has a much larger one. I want to take my retirement to pay these bills off. What will my penalty be? I have one Roth IRA and a 401k.

I'm not sure of the Roth, you can go the institution that manages it for you and ask them. But with the 401K, you will have a 10% penalty plus the amount of the distribution will be added to your taxable income and you will have to pay that at your regular tax rate. It might also cause your tax bracket to increase.

Try to settle with the insurance companies. Offer them a payment plan that you can afford.