The anti-double dipping rule applies to federal dollars, such as those received from the American Opportunity Tax Credit. So long as there is no tax benefit, there is no explicit rule stating that your employer cannot reimburse you, and you are not required to redeposit money withdrawn from your 529. You may want to consult with a tax professional.
VP, Research & Development
This information does not constitute tax advice and is provided for informational purposes only. Please consult your tax advisor, financial advisor, local taxing authority, and/or plan provider or sponsor for more information.