This is my question?

Which one of the following investments is probably least appropriate for a qualified
pension or profit sharing plan?
a. Municipal bonds b. Treasury bonds c. Zero coupon bonds d. Corporate AAA bonds

Muni bonds are inappropriate for any type of qualified retirement account. The interest earned on muni bonds is exempt from federal income tax (and possibly state income tax). As a result, the rate on muni bonds is typically lower on a before tax basis than a similarly rated corporate bond. (The value of muni's being their after-tax rate; typically higher than corporates)

Since the growth of assets within a qualified plan account are not taxed from year to year, you would loose the tax exempt benefit of munis. Since the other three choices are not tax exempt they would be appropriate options to include in a qualified plan offering.

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