Here's your options,
1. withdraw the excess contributions
2. recharacterize the excess Roth contribution to a traditional IRA contribution.
3. Do a "backdoor" Roth conversion.
To withdraw the excess, you will need a special form for the trustee, and you also have to withdraw the earnings, if any. You will pay income tax on the earnings.
If you recharacterize to a traditional IRA, your contributions will still be non-deductible because of your income. Because of this, this creates a "non-deductible basis" in your IRA account, which you and your broker must keep track off. Normally, your IRA withdrawals when you retire are subject to income tax. But if (for example) 20% of your IRA contributions were non-deductible, then 20% of your withdrawals will be non-taxable. But this is a fair amount of recordkeeping you have to keep track of, and it kind of defeats the purpose of a traditional pre-tax IRA by complicating the source of the money. But it does allow the money to grow for retirement.
The third option is more advanced and complicated. You first recharacterize your contribution as a regular IRA, then convert the regular IRA to a Roth IRA. This is known as a "backdoor conversion." The important point here is that you can't just convert this year's contributions, you have to convert your entire IRA, and you will have to pay income tax on the pre-tax portion of the IRA balance. This might be a substantial tax bill, depending on the size of the account. But after that, all the money is in a Roth account and you will never pay income tax again when you retire. You can also continue to make backdoor Roth conversions every year after this even if you are barred from directly contributing to a Roth account by your income. Each year you would open a new traditional IRA, make a non-deductible contribution, then convert it to your Roth. It's a legal way to make Roth contributions when you are income-limited. But for it to work, you have to convert all your traditional IRA money the first year you do it.
Professional financial advice may be recommended if you want to try this option.
