Q. Does the withdrawal have to occur in the same year the scholarship was received, to qualify for the penalty exception?
A. Yes.
Q. Can we take a withdrawal now without penalty for a scholarship she received in a prior year?
A. No.
For more discussion, on this topic, including an opinion that you can claim the exception, see this old thread:
https://ttlc.intuit.com/community/college-education/discussion/529-plan-withdrawals-and-prior-year-s...
