Did you enter your 1099R in the right place in your federal return? Information flows from your federal return to the state return. If you entered it in the wrong place for federal that is what is causing the issue---because PA does not tax retirement income.
Check your federal:
To enter your retirement income, Go to Federal> Wages and Income>Retirement Plans and Social Security>IRA 401 k) Pension Plan Withdrawals to enter your 1099R.
**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
