My 1099R contains $60 in Block 14 and Block 16 is blank. Turbo Tax appears not to recognize this fact.

Does your form have any information on box 15?  If you don't have a state that the withholding is going to, the program isn't allocating it to the state.  

If you have withholding in box 14 then enter the amount from  box 2a into box 16.   If box 2a is blank use the amount from box 1.