I cannot believe this answer, since, under Hawaii law, only that portion of a pension plan which is employer-funded (i.e., matching funds) is tax exempt when you make a withdrawal. If you rollover a 401k into an IRA, it appears that you have to keep track of what portion of the IRA came from the employer-funded portion of the 401k. That portion, and that portion only, is exempt from state tax. But when you are issued a 1099-R, it does not contain the necessary information, so there is no way that TurboTax knows what to do (which is why it asks you to "enter the nontaxable portion of the IRA distributions").
Unless there has been a recent change in the law that I don't know about (say, within the last year), TurboTax steers you the wrong way by saying "Distributions made to comply with federal mandatory payout rules [i.e., RMDs] are non-taxable." Only part of them is non-taxable.
If I'm wrong, I'd sure like to know about it.
