Yes if you switch/recharacterize your Roth contribution to a traditional IRA then you can avoid the excess contribution penalty (assuming that excess contribution is only due to MAGI and not because you had insufficient compensation to support an IRA contribution or were over the annual limit).
If you select to make the contribution nondeductible (step 9) then only the earnings will be taxable when you convert the traditional IRA to Roth IRA.
If you convert your 401k to the Roth than that will also be taxable unless you have a basis (after tax contributions) in your 401k.
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