Yes, he can correct the excess contribution and amend accordingly, but there are 3 options:
1) Remove the excess contribution by 10/17. Any earnings allocated to the contribution will be taxable IN the year the excess contribution was made, which could result in some taxable income for the 2010 return plus a 10% penalty on the earnings. But the excise tax would be returned.
2) Recharacterize the contribution to a TIRA contribution. Most likely the TIRA contribution could not be deducted and Form 8606 would be filed to report the added basis for 2010. The 8606 could be filed on a stand alone basis for 2010. Or if the contribution could be deducted, the deduction could be claimed on the 2010 return. No income is distributed and therefore no income tax incurred for 2010 or 2011.
3) In the event his contribution generated real good earnings, he could leave the excise tax in place, and either apply the contribution to 2011 or if his 2011 income will also be too high, he could remove the contribution prior to year end to prevent a second 6% charge. But by paying the excise tax, his earnings will remain in the Roth, potentially tax free. This eliminates the amended return and also any taxable and penalized earnings. If earnings are upwards of 20%, perhaps this would be the best choice, but the decision must be made prior to 10/17/2011. If he does this, the contribution should not be taken out until very late in 2011 because no additional tax is incurred until 1/1/2012. Meanwhile, the contribution is generating more potentially tax free earnings that will stay in the Roth.

The amount and cost of additional filing work should be factored into the decision as well as the current tax cost.

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