If you take a withdrawal from your 401k, then that will increase your income because the withdrawal will be taxable. However, due to your age being over 59 1/2, you should not incur any additional penalty for early withdrawal. You should only be subject to income tax alone on the amount withdrawn.
Be aware that if you do take a withdrawal, Federal and state taxes can be or will be withheld to help offset the increase in income tax.
@Ed Roxas
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