You can do anything you want with the money distributed for an IRA. If this is a Traditional IRA then it is taxed as ordinary income at your margional tax rate and if under age 59 1/2 there will be an additional 10% penalty. If yiur marginal tax rate is 24% and you are under 59 1/2 then you would probably want to have about 34% withheld for tax or pay estimated tax from other funds instead so you are not hit with an underpayment penalty of tax withholding.
You said a loan - you cannot take a loan form an IRA unless you roll it back within 60 days of the distribution, in case you were thinking that you could replace the money when the loan was paid back.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
