Q. Can the tax exempt employer reimbursement then be deposited into the 529 account?
A. Yes. You can make additional 529 plan contributions. It doesn't matter where the money comes from.
Q. Would this situation then be considered tax exempt money being reimbursed into tax exempt 529 plan with the appropriate "money trail" to show source of income?
A. No. All contributions to a 529 plan are "after tax" money. The only exception is accrued interest on US Savings Bonds
