B usiness owners and top executives will be able to derive greater benefits from both a defined contribution plan and a defined benefit retirement plan in 2000, we hear from employee benefits specialist David Wasserstrum.

The law that prevented this has been repealed. Until this change, an owner/executive could not fund both accounts to their maximum separate legal limits. If a defined contribution plan was in place, and being fully funded, combined plan contribution limits sharply reduced the maximum contribution to a defined benefit plan.

New in 2000: The combined plan contribution limit is repealed. Now owner/executives can fund their defined contribution plan accounts up to a maximum of $30,000 and fund their defined benefit plans with, for example, $85,000, depending upon compensation and age -- for a total deductible retirement contribution of up to $115,000 annually.