State tax filing

The retirement distribution code you have entered for each Form 1099-R is correct. The distribution code for a normal distribution is 7, in Box 7.

Once you get to your PA return you do have to answer the question as noted in the screen image from @StreamTrain. However, the selection should be: "I'm eligible, plan's eligible (No PA tax)". 

• Do I have to pay PA income tax on my retirement after I retire?

This will eliminate taxing the retirement on the PA return. See image below.