If you work as an employee, and are also self-employed, you can max out the retirement plan opportunities available through your job, and can also max out a SEP for your self-employed business.

The only time you wouldn't be able to do so is if both businesses had common ownership. In that case, the businesses would be considered one business for benefits purposes.

You have until the due date of your tax returns, including extensions, to establish and fund your SEP for 2006. The amount you can contribute into a SEP, however, is limited to 20% of your net self-employment income. So on $25k of earnings, you could contribute approximately $5k.

Yes, the per plan limit is $44k for 2006, but you would need to show self-employment income in excess of $200k to be eligible to contribute that much into a SEP.

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