Apollo Company sponsors a money purchase pension plan with a base contribution of 12.3%. What is the maximum excess percentage?

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In the context of a money purchase pension plan, the maximum excess percentage is the limit on contributions that can be made over and above the base contribution. According to IRS guidelines, the maximum contribution to a money purchase pension plan cannot exceed 25% of the participant's eligible compensation, including the base contribution.

Given Apollo Company's base contribution of 12.3%, you can determine the maximum excess contribution percentage by subtracting the base contribution from the overall limit of 25%. This calculation yields an excess percentage of 12.7% (25% - 12.3%). However, IRS regulations require that any defined contribution plan, including a money purchase plan, must follow the combined maximum limit when considering all contributions made to the plan for a participant.

Thus, the correct answer focuses on recognizing that with Apollo's base contribution of 12.3%, the additional maximum contribution that can be added beyond this base can be capped at 18% on a combined contribution basis to align correctly under IRS rules and regulations. Therefore, the option representing this limit as 18.0% stands as the maximum excess percentage that is allowed.