You can do this by withdrawing from your 401(k) up to your upper limit.
If you anticipate that your earnings in retirement will fall in a higher tax bracket, consider moving the savings to a Roth account.
The borrowed amount is not subjected to ordinary income and doesn’t attract an early withdrawal penalty if it follows the IRS guidelines.
If you have already made a 401(k) withdrawal, consider deferring your Social Security benefits to ensure that you remain in a lower tax bracket.
When you withdraw from your 401(k) before age 59 ½, you are subjected to a 10% early withdrawal penalty plus income tax.
You can avoid paying tax by rolling over your funds to an IRA and donating the distribution to a qualifying charity.
Roll over your 401(k)s with your previous employers into your current 401(k) before you turn 72.
The IRS offers a waiver in case of hardship withdrawals such as putting a downpayment for your primary residence mortgage, difficulty in paying college tuition, job loss, etc.
Tax-loss harvesting can offset all or some of your tax burden generated through a 401(k) withdrawal.