W2 income from one company used to fund SEP (?)

[AKconsult]

I have a CPA who is telling me he wants a "sophisticated" plan design option for a doctor who is an employee of a practice and also has his own business on the side with self-employment income.  The side business has a net loss, so I told him there is no income to take a deduction on for the SEP, therefore no way to fund a SEP.  The CPA thinks he can use some of the doctor's W2 income to fund a SEP contribution (?)  This is not permissible, right?  I am just questioning it because the person asking about this is a CPA so...

[Calavera]

It is a wonderful idea to put post-tax money into pre-tax account and get taxed again upon withdrawal. However 25% of net $0 is still $0.

[Kevin C]

No earned income also means a zero 415 limit, which applies to a SEP under 415(a)(2).

[Larry Starr]

5 hours ago, AKconsult said:

I have a CPA who is telling me he wants a "sophisticated" plan design option for a doctor who is an employee of a practice and also has his own business on the side with self-employment income.  The side business has a net loss, so I told him there is no income to take a deduction on for the SEP, therefore no way to fund a SEP.  The CPA thinks he can use some of the doctor's W2 income to fund a SEP contribution (?)  This is not permissible, right?  I am just questioning it because the person asking about this is a CPA so...

Being a CPA does not eliminate the possibility of also being an idiot!