Q. Does Georgia have a provision to recapture state income tax deduction for 529 plans?
A. Yes.
Q. Does it apply if the 529 money is later rolled over to an ABLE account?
A. Probably. I cannot find a definitive answer to your question. I conclude that you are subject to recapture by omission. Rollovers to ABLE or even another 529 plan are not listed as "qualified expenses" for avoiding recapture. They specifically say that a rollover to a Roth IRA is qualified (recently added provision). I take the fact that other rollovers are not listed as meaning a Rollover to an ABLE account would be subject to the GA deduction recapture provision.
You should contact the state tax people and/or 529 plan administrator for a definitive answer. Please let us know what you find out.
