It's not a yes or no answer. There's other factors when calculating the amount not taxable. The best way to find out is to enter it in TurboTax.
Here's how to enter your 1099-R in TurboTax:
Source: TurboTax FAQ
Thxs Helen, I have done the steps you described below in entering my 1099-R data on my fed. tax return.
My question related more to when going through the state return, in the pension and annuity section TT asks:
"You have 12K of federal taxable pension and annuity income.
Enter the portion that qualifies for the CO pension and annuity exclusion, enter 0 if none.
So, if I understand your pervious answer all 12K of mine would be excluded from state taxes....Correct?