A corporation may use a Qualified Tuition Plan as a tax-advantaged fringe benefit or nonqualified deferred compensation plan for its employees. Since corporations are allowed to be an account owner of a Qualified Tuition Plan, a Qualified Tuition Plan could be established for a child of an employee. Since the Qualified Tuition Plan is not a qualified pension or profit-sharing plan, the corporation cannot claim a tax deduction for the contributions to a Qualified Tuition Plan. The employee does not report income at the time the Qualified Tuition Plan is funded. The account could grow tax-free until the child attends college and is expended to pay for qualified college expenses. If the child does not attend college or the employee leaves the corporation, the corporation could terminate the Qualified Tuition Plan and withdraw the funds (subject to a penalty). The corporation would have to pay taxes on the deferred earnings.