As they say.... "There is no avoiding death or taxes". You can up your deduction amount on your W4, but you will have to pay a big tax bill when you file your taxes, and possibly a penalty. You have to decide, to pay now or pay later. Putting more in your 401K may not be a good idea, if you have to take money out of the 401K to pay the taxes later. If you are under 59-1/2 you may have to pay a 10% additional tax penalty on top of the normal taxes. You may be able to take a loan from your 401K, but your employer would have to allow that. The advantage of the loan from the 401K is that when you pay it back, you are paying yourself back.
