Both of us are >80 y.o. I still see that I have Early Distribution Penalty. How to fix it

There is no early distribution penalty if you are age 59 1/2 or older.

What is the code in box 7 of the Form 1099-R?

Is a penalty amount shown on Schedule 2 Line 6? 

Are your birth-dates entered correctly in the My Info section?  Month/Day/Year, eg 12/30/1939