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.