Doctor owns 50% of a C-corp and maxes out his PS contribution each year. This doctor also receives self-employment income unrelated to his medical practice.

Can he establish and fully fund a SEP based on his self-employment income?

yes because there is no contolled group (Need more than 50% ownership). But why a sep when the Dr can establish a 401k with discretionary contributions to take advantage of deducting the first 15k in salary reduction (20k if 50) and an additional 29k in discretionary contributions?

Thanks. Good point about the 401k. We're trying to get the SEP in place for 2005, but will establish a 401k early in 2006.

I'd never venture to attempt a controlled group determination without first know who owns the other 50%. Many times I have encountered this question, it was the Doctor's wife. Just a thought.