Which of the Following Statements Regarding the Qualified Tuition Plans

question 84

Multiple Choice

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

• A)Distributions can be made tax-free to pay for room and board at college.
• B)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.
• 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 of income not used for qualified higher education expenses are taxable and subject to a 10% penalty.

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Definitions:

Network Adapters

Hardware devices that enable a computer to communicate over a network with other computers or devices.

Fiber-Optic

A technology that uses thin, flexible fibers of glass or plastic to transmit light, allowing for high-speed data transmission.

SSID

Service Set Identifier, the name assigned to a WiFi network to distinguish it from others.

Piggybacking

Unauthorized access of a secured wireless network by utilizing a legitimate user's connection without their knowledge.