Which of the Following Statements Regarding the Qualified Tuition Plans

question 941

Multiple Choice

Which of the following statements regarding the qualified tuition plans (QTP) is incorrect?

• A) Distributions made from a QTP for college tuition will be tax- free in addition to qualifying for the American Opportunity credit or lifetime learning credit.
• B) Distributions can be made tax- free to pay for room and board at college.
• C) Distributions of income not used for qualified higher education expenses are taxable and subject to a 10% penalty.
• D) 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.

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Definitions:

Hemiplegia

A condition characterized by paralysis on one side of the body, typically caused by a brain injury or stroke.

Fowler's Position

A bed position where the head and trunk are raised, typically between 15 to 90 degrees, often used to improve breathing and ease discomfort in patients.

Spastic Hand

A condition characterized by involuntary muscle contractions or spasms in the hand, affecting movement and dexterity.

Comfort Level

A subjective measurement of a person's well-being, ease, and physical or emotional satisfaction in a specific situation.