"I removed the 2020 excess contribution in anticipation (and calculations) that I would be ineligible, but that turned out to be incorrect. I believe that is also why I am seeing the $7000 on line 19."
I see, that makes sense. That means that you did not actually need to obtain the regular distribution of $6,500 but could have instead treated the excess as part of your 2020 contribution. As you indicated, since you did obtain the regular $6,500 distribution, that by itself eliminates the excess and you can still make a Roth IRA contribution for 2020 if you choose to do so. I don't see how that would add any complication. It wouldn't change your tax return in any way other than to remove the $7,000 from line 19.
