Bright child can't retain letter names?

HI, My daughter had the same thing you are describing, It started around the same time 5. In the first grade they thought maybe she had a learning disability, her teacher recommended holding her back a year to see if it was just a maturity thing (maybe just not retaining due to lack of attention, although it did seem that she was paying attention and that she truly couldnt remember 5 seconds after) I did hold her back and she repeated the first grade. The best decisin I could have made, she is now a 4th grader and has been a straight A student since the second grade. I believe she just needed a little extra time to get it, the teacher explained it like this : Sometimes a light bulb goes off in their head, kinda like OH now I get it. LOL She really does"get it" now. She loves school and is doing very well. So keep in touch with the teachers and kep working at it, she will get there. Good Luck to you and her!!