DG2016, I am having the same issue you are with my 1099-R. The Turbotax error states "Form 1099-R (Name of institution): Box 14a For electronic filing, New York State withholdings can not be greater than or equal to gross distribution or state distribution".
NOTE: it does NOT say greater than AND equal to gross distribution or state distribution".
The answer from the Turbo Tax Expert to just fill in state distribution terrible. Asking us to falsely enter an amount not on the original 1099-R is their answer! Crazy.. How about Turbo Tax fixes their software immediately to not throw and invalid error.
As an aside, if you did file your return by entering the state distribution, did it successfully go through?
