Retirement tax questions

Hi @dmertz 

1.  I 'd like to chose e-file to reduce next year's work.  What is correct selection on page below?

2. I had excess Roth IRA contribution $7000  made in 1/17/2020 for 2020.

    $7000 was removed with earning $677 in 2/25/2021.

    Why  TurboTax still apples additional $379 penalty if select option #3 (see below attachment)?

    I am 63 in 2021.  Do you think the calculation is wrong according to 

The IRS pub 590-B says:

Withdrawals of contributions by due date. If you withdraw contributions (including any net earnings on the contributions)
by the due date of your return for the year in which you made the contribution, the contributions are treated as if you never made them.
If you have an extension of time to file your return, you can withdraw the contributions and earnings by the extended due date.
The withdrawal of contributions is tax free, but you must include the earnings on the contributions in income for the year in which you made the contributions.

thank you for being patient with me!