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Thanks @dmertz. I mistakenly stated in the OP that I entered $6,000 in box 1 of the 1099-R. In fact, I entered $6477.49 in box 1 from the start.

 

Please review my responses when revisiting the Roth IRA contributions section, as I answer the following:

"Enter your total Roth IRA contributions for 2021, even if you transferred, or "recharacterized," some or all of it to a traditional IRA"
Your Roth Contribution: 6,000.

 

"Would you like us to track your Roth IRA basis?

No

 

"Enter Excess Contributions"

Your Excess Roth IRA Contributions for Prior Years: 6,000
I originally answered 6,000 here, thinking "Prior Years" included 2021. If I enter 0, then the $360 penalty goes away. 2021 is the only year in which I made an excess contribution. Is this where I went wrong in TurboTax? This value should be 0 because the question is only asking about excess contributions in tax year 2020 and prior, not inclusive of 2021? Is that correct?

"How Much Excess to 2021?

Excess to Credit 2021 Roth IRA Contributions: 0

 

"Contributions Withdrawn Before the Due Date of Your Return: 6,000

 

Appreciate your help @dmertz! Thanks.