Is an IRA Loan Allowed?
No. IRS rules dictate what you can do with IRAs and only allow 'distributions' from an account.
If you want to review the rules governing your account, check with the IRS or a tax advisor about taking an IRA loan.
Alternatives to IRA Loans
Since you can’t do an IRA loan, you’ll have to try an alternative. You may be able to tap IRA assets using a 60 day rollover. You have to follow some strict IRS rules, but this technique can act like a short term IRA loan.
You might also be able to borrow against balances in company retirement plans such as 401(k) plans. Your plan must allow loans, and you’re taking a few risks (including defaulting on the loan resulting in taxes and penalties). Work with your HR department and tax advisor to understand this technique.
Finally, you might try to borrow elsewhere. An unsecured loan (where your retirement savings are not collateral) may do the trick. Peer to peer lending services, family members, and banks or credit unions may help.
