Retirement tax questions

The State Type Code for your distribution is Traditional or Roth IRA: I'm under 59.5 (assuming the age is correct). 

As you continue, you'll be asked about the Basis of your retirement income (zero), but you'll see the message: This is a distribution due to death and is not taxable for PA  purposes. 

This information comes through from the federal return, where you enter your 1099-R with distribution code 4, for Death Distribution.