I rolled over my employer 401k plan. I received two Form 1099-R, #1 for an RMD amount, #2 for the balance amount rolled over to the investment company.
#1 1099-R for the RMD shows Box 7, code "7" (i.e., normal distribution), this RMD amount is also shown in Box 16 State Distribution. Pennsylvania does not tax RMD distributions. TT does NOT ask me a question on if this distribution/amount is PA taxable or not. Consequently, it includes this RMD amount as PA taxable income.
Does TT have a way that the amount in box 16 is not included as taxable income? The PA state rules are clear that RMDs are not taxable in PA. Thanks for your help!
