dmertz's answer above is looking more like the correct answer: You don't say "yes" for Line 55 if you are requesting a waiver from any penalty -- even if you did receive a distribution in the next calendar year (Feb. 28 for the case in this discussion; I have a case myself where the distribution was taken this March). The IRS' definition of "the corrective window" in its Form 5329 instructions is indeed unclear ("when the tax was assessed?").
If you do say yes for Line 55, then you wind up paying the 10% (or 25%) penalty, no? And we're trying to avoid that. TurboTax EasyStep doesn't even ask this for Line 55, actually; we see it only on the form itself.
