How do I add the word Exempt in Box 14 on my 1099-R form? It has a dollar sign but the word Exempt is on my form

If there are not any state income taxes withheld in box 14, then leave boxes 14 thru 16 blank (empty) on your Form 1099-R.

If it says Exempt then most likely your State doesn't have State Income Tax. You can keep that box empty or blank and proceed to file.