The error is trying to say that there should not be any state taxes withheld (Box 12) if there was not a state distribution (Box 14). 

To correct it, you need to Edit any Form 1099-R that shows an amount in Box 12 for state taxes withheld.  If Box 14 is blank or zero, enter the amount shown in Box 12 on the 1099-R form in Box 14. In Box 15 enter State code. Finally enter the information in Box 1 on the form into Box 16. 

Use these steps to go directly to a list of your Form 1099-R entries and Edit them one at a time to correct the error:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)

• This opens a box where you can type in “1099-R” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)

• The search results will give you an option to “Jump to 1099-R”

• Click on the blue “Jump to 1099-R” link