No, you do not need to amend your 2022 tax return since you have already reported the recharacterization on your 2022 tax return. You can ignore Form 1099-R with code R.
Yes, you can continue with your 2023 tax return. Your basis from the 2022 Form 8606 line 14 should be carried over. If not then you can enter it when TurboTax asks “Any Nondeductible Contributions to Your IRA?”. Answer "Yes" and then you can enter the basis from your 2022 Form 8606 line 14.
No, the decrease in value won't impact your return since you are not converting the traditional IRA funds to a Roth IRA.
You will enter the recharacterization when you enter the contribution to the Roth IRA:
- Login to your TurboTax Account
- Click on "Search" on the top right and type “IRA contributions”
- Click on “Jump to IRA contributions"
- Select “Roth IRA”
- Answer ‘Yes” on the “Roth IRA Contribution” screen
- Answer “No” to “Is This a Repayment of a Retirement Distribution
- Enter the Roth contribution amount
- Answer “Yes” to the recharacterized question on the “Switch from a Roth To a Traditional IRA?” screen and enter the contribution amount (no earnings or losses) on the next screen.
- TurboTax will ask for an explanation statement where it should be stated that the original $xxx.xx plus $xxx.xx earnings (or loss) were recharacterized.
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