loan for sole prop from rollover money

[Guest dubya]

A sole proprietor wants to establish a qualifed plan, one which he can eventually takes loans from (for daughter's education). While he will fund the plan regularly, the more pressing objective is to roll his (pre-tax) IRA money into this plan and eventually takes loan(s) from this money, as well as from the funded assets as well. Do you see any problems with this gameplan? Thanks