Ten years ago, Scott, age $49,$ opened a Roth IRA account, which is worth $$85,000$ today. His daughter Sienna will enter college in three years and Scott intends to withdraw $$40,000$ from the account to pay for Sienna's freshman$$year tuition. Which statement does not correctly describe the withdrawal consequences from this account?

Scott will not pay any income taxes on the distribution.

Scott will not pay an early withdrawal penalty.

A distribution would be reported as income on the FAFSA, which may affect the expected family contribution amount when Sienna applies for financial aid.

A distribution taken from a Roth IRA is considered a loan that must be repaid.