Sorry, what you are invested in inside the IRA has no bearing on your distribution and whether it is state taxable or not.
Your IRA could contain all tax-exempt bonds from your own state, and the distribution wouldn't be exempt form taxation in your home state
.........whereas tax-exempt interest from the same bonds in an standard taxable brokerage account would not be taxed by your state.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
