Yes, that is correct. The exclusion should be listed in the Federal column of Form IT-203 line 28; but, since it is not New York source income, it should not be included in the New York State column on line 28. Please see "Line 28 – Pension and annuity income exclusion" at the bottom of page 27 in the Instructions for Form IT-203.
You will need to include the distribution from the inherited IRA as income on your resident state return.
@atte
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