Yes, the amount withdrawn is added back to the contributing taxpayer’s return, plus a 10% penalty.

No deduction would be allowed on your Alabama income tax return, and the income would be reported once it is withdrawn or distributed from that other state’s plan.

The postmark date on your contribution will be accepted as the date of the contribution, as long as it is on or before December 31.   The contribution does not have to be received by the plan on or before December 31.

Contributions to the Alabama ABLE Savings Plan  are deductible on a state of Alabama income tax return up to $5,000 per Alabama taxpayer or $10,000 for married Alabama taxpayers filing jointly if both contribute.