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Actually, I don't think you have as bad a problem as you might think. Excess contributions can be withdrawn by the due date of the return, including extentions, without penalties. Except your trustee might charge you a fee. See Publication 590 p33 Excess Contributions Withdrawn by Due Date. Make shure the interest is withdrawn.

The Roth IRA can by recharacterized to a non-deductable IRA, again it needs to be done by the due date including extentions. Pub 590 p 41 shows you how to do that.

At least that's how I read the rules

I decided to seek the professional advice of a CPA. She advised exactly as above since the Roth excess contribution needed to be withdrawn.

Thanks to Charlie48K and pmarti for your advice.
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