Hello Accountant man.   Thanks for your replies and explanation.   I understand your explanation and the general comments about PA and taxation of retirement plan distributions.  The PA PIT (Personal Income Tax Guide) Guide, which I have referred to in my own practice over the years many times, also has a detailed chart comparing Federal treatment of 1099R distribution codes (Box 7 on 1099R) to PA treatment of those same codes.    The PIT Guide makes it very clear that any 1099R distribution, coded "4", which is a death distribution is not taxable.   I am well familiar with that in the PA income tax return situation for indivdiduals and PA-40.    However, I was second guessing myself on this when it comes to PA-41 and an estate being issued a 1099R, with a "4" death distribution in Box 7.  

The tax treatment is no different for an estate, than it would be if issued to an individual for PA income tax purposes.   At least that is what I am understanding you to be saying.   If an estate receives a 1099R reporting a 403b distribution, coded in Box 7 with the number, "4" (death distribution) then that is not taxable income to the estate--at the PA 41 level, and it is also not taxable income that has to be passed through to the individual beneficiaires on PA-RK1.     Do you agree with that?