Using part of your 401(k) balance to satisfy the loan is called an offset distribution. The Tax Cuts and Jobs Act of 2017 changed the tax code to allow up until the due date of the tax return for the year in which the distribution occurs, including extensions, to roll over a qualified loan offset distribution. Just make sure that the employer indeed treats this as an offset distribution and will include code M in box 7 of the 2022 Form 1099-R. When entering this Form 1099-R into 2022 TurboTax you'll report as a rollover the amount repaid.
(The separate article to which JohnB5677 refers mentioning the 60-day deadline is apparently outdated with respect to offset distributions.)
