Your scenario is not unusual. Contributions to a 401(k) are allowed based on the income earned. Your income earned and 401(k) contributions must be prorated based on the income earned from each state. The fact that your resident state does not have an income tax does not change the requirements to report the appropriate income allocable to each state.
When you prepare your nonresident state (CO), TurboTax will walk you through the questions so that the income is properly taxed in that state. The link below will provide additional guidance.
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