Tax on private lending fund

[Stanley Nguyen]

I have been lending funds to a close friend of mine for a rate of 8%.  I got a 1099-INT from him to file my tax, which I paid a big portion out of 8% (effectively around 6% after paying the gov).  Is there a better way to do this?

[Nicholas Aiola]

@Stanley Nguyen Look into SDIRAs or, if you have self-employment income, Solo 401k plans. Lending out of your retirement vehicle will shelter interest income from taxes.

@Brian Eastman , @George Blower , and @Dmitriy Fomichenko are all experts in the SDIRA/Solo 401k arena and, I'm sure, will be happy to give you more details.