During the PA interview, you are asked what type of income is represented by each 1099R. Depending on the code in box 7, some retirement distributions ARE taxable on a PA income tax return.
If your 1099R is coded a 7 in box 7, it is generally not taxable and you should select "I'm eligible, plan eligible" to mark the distribution as not taxable. If box 7 contains a D such as 7D, it is taxable same as federal.
Ignoring this screen will default to taxable.
