An annuity distribution rollover is considered a Section 1035 exchange, which is a financial transaction in which a life insurance or annuity policy is replaced for a new one without any taxable event. It is not taxable income on your federal or state taxes.
Your cost basis is your total gross premiums paid less any dividends or distributions. Your gain is the difference between the cash value of the annuity and its basis.
Your rollover is eligible and the distribution amount would be the amount rolled over, which you would get from Box 1 of your 1099-R.
Lastly, the correct information should flow from your federal information to your state return as nontaxable.
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