Which of the following statements regarding the qualified tuition plans? (QTP) is incorrect?? A. Distributions of income not used for qualified higher education expenses are taxable and subject to a? 10% penalty. B. Distributions can be made? tax-free to pay for room and board at college. C. ?Katie's parents had established a QTP for? Katie, but she has received a? "full-ride" scholarship. ? Katie's parents can name her sister as a replacement beneficiary of the QTP. D. Distributions made from the QTP for college tuition will be? tax-free in addition to qualifying for the American Opportunity credit or lifetime learning credit.