Yes that is correct, you will select the option which states "Ok, we'll withdraw the full $ excess contribution by April 18, 2022'". If you plan on doing a withdrawal. If you select this option, your refund amount should go up / amount you owe should go down since TurboTax will remove some of the penalties caused my excess contribution.
However, if you don't plan on withdrawing by April 18,2022, you will select the option which states " No, we're not going to make this withdrawal." If you select this option, the excess amount will be taxed an extra 6%
