Hi Dana,
After re-reading the interview questions and following your instructions, the penalty is gone and my answers seem to read correct.
Regarding the 1099-R form, I had wanted to avoid amending my return, but the interview questions kept asking for explanations and details that I was not clear about, so I think that it may be easier to just file an amended return when Vanguard sends me the actual 1099-R form unless I am mistaken.
--Ken
