TurboTax is simply reminding you that your 2023 Tax return should reflect a $1,040 Roth IRA contribution, meaning that your 2023 tax return should not show the $1,040 as either a deductible or nondeductible traditional IRA contribution. Your 2023 tax return should also have included an explanation of the recharacterization. If your 2023 tax return already reflects that, your can ignore the code R Form 1099-R, TurboTax is already ignoring it other than to issue the reminder.
The $46.97 simply becomes earnings in your Roth IRA.
Similarly to what you should have done on your 2023 tax return, enter the traditional IRA contribution made for 2024, then indicate that you "switched" $1,200 of your contribution to be a Roth IRA contribution and enter the explanation indicating that you recharacterized $1,200 and that the transfer included $60 of attributable earnings for a total transfer of $1,260. You can then ignore the code-R 2025 Form 1099-R that you receive next January.
