Loan against 403(b) after separation of service

[Samwish710]

If you have an existing 403b that you never moved from an old employer, are you allowed to take a loan against this retirement plan?  If the plan administrator allowed for a loan to be taken out, but the IRS rules state that this is not allowed, what would the potential penalty be?

[dmertz]

Review the 403(b) plan agreement.  The terms of the 403(b) plan agreement determine whether or not you are permitted to take a loan from the 403(b) after separation from service.

[Samwish710]

To clarify, the IRS does not have a rule against taking out a loan against a 403(b) after separation of service?  This would be a case by case scenario based on the specific 403(b)?