You can only recharacterize your 2021 contribution until the due date of the 2021 return. You cannot recharacterize your 2020 contribution because the due date has passed.
You will have to pay the 6% penalty for 2020 and 2021 since you haven’t removed the excess by December 31, 2021. You seemed to have entered the correct information on your 2021 tax return since you are seeing the penalty.
To remove the 2020 excess contribution and avoid further penalties you will take a regular distribution (without earnings) by December 31, 2022 since it is after the due date of the 2020 tax return. This distribution will be reported on your 2022 tax return but will not be taxable since you are withdrawing a Roth contribution.
@bgal
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