I am providing additional information regarding the Form 1099-R that was received.
If there is a Code 4 in Box 7 of the Form 1099-R, it represents funds that may have been taxable to your brother, in which case you as the beneficiary would pay the tax on it.
In looking at the Indiana tax forms and TurboTax entries, Indiana uses the federal AGI as the starting point then subtracts out specific exempt income. In which case, it would be taxable in Indiana (unless it was a military retirement).
After you input the Form 1099-R code into TurboTax it will determine if the amount is subject to taxation in the respective states.