Tax Question 401k withdrawl

[Ray Simpson]

I have an annual W2 of 80k, I file jointly with my wife, she has retired this year taking cash payout of her 401k & pension totaling 100k.  She also has W2 income this year of 18k. My dilemma is my 401k of 90k that I'm eager to take out without penalty to invest in real estate, however I'm thinking after adding all this up in one years total combined income we will be severely taxed. I'm thinking now I'll have to wait until next year to remove my 401k. I"ll be 60 years old this November, also selling two homes, one I've lived in for 35 years will sell for less than 300k, the other home 350k from father in laws estate from 2006. 
Is there an angle I'm missing? Should I leave my 401k in place until next year?