Sorry no. The 401K withdrawal will be taxable. For the investment loss you can only deduct a max of $3,000. The rest you will have to carryover. Do you have any other investment sales?
You get to first offset the loss against any gains you have each year so that can use more of it up. Then after applying the loss to the current gains you can take a max loss of 3,000 (1,500 MFS)per year. Turbo Tax does all the calculations for you.
