I'm trying to follow worksheet 2 from the 1999 Pub 571. I'm stuck and need help, if possible. A participant with compensation of 78,000 has a 415© limit of $19,500. He make elective deferals of $9800.00 and receives ER match of $4200.00. It seems to me he has not exceeded 402(g) and does not need to use the special "catch-up" election. He has also not exceeded MEA (computations done separately) and he has not exceeded 415©, total employer contributions are $14,000. If you follow the steps of worksheet 2, however, it looks like the "amount excludable from gross income" is only $13,000. What am I doing wrong?

I don't believe this participant has exceeded any of the limits.