Not relevant to your current situation, @kbeducator, but for others reading here, it might be worth noting that if your child attends a service academy (beginning with the 2003 tax year) the Military Family Tax Relief Act eliminated the 10% penalty:
President George Bush signed the Military Family Tax Relief Act of 2003 (HR 3365) on November 11. Among other items, the Act provides that attendance at a U.S. military academy will be treated as a scholarship for purposes of the 10% penalty on nonqualified withdrawals from a 529 plan or Coverdell ESA. The value of the no-cost education (as determined under the U.S. military code) can be withdrawn penalty-free from a 529 plan or CESA, although the earnings portion will continue to be taxable.
The academy advised either keeping the funds intact until graduation in case something were to separate a cadet who would then need those funds for civilian college or withdraw them at a rate equal to a civilian college payment schedule. In our case, we withdrew the funds in eight equal distributions tied to our son’s tuition-free semesters at USMA. We retired early.