What is the Box 7 code on the wife's 1099R?

Married taxpayers who both receive pension income are each entitled to
a maximum pension and annuity income exclusion of $20,000 whether they
file jointly or separately. However, you cannot claim any unused portion of
your spouse’s exclusion. If you receive your own pension income and your
deceased spouse’s pension income, you are entitled to a maximum pension
and annuity exclusion of $20,000 each year.

Qualified pension and annuity income does not include:
• Distributions received from a nongovernment pension plan as a
nonemployee spouse in accordance with a court-issued qualified
domestic relations order (QDRO) or in accordance with a domestic
relations order (DRO) issued by a New York court.
• Distributions received as a result of an annuity contract purchased
with your own funds from an insurance company or other financial
institution. The payments are attributable to premium payments made
by you, from your own funds, and are not attributable to personal
services performed.

https://www.tax.ny.gov/pdf/publications/income/pub36.pdf