Now that I read it again, I think the answer should be Yes. This is apparently money that was treated as deferred compensation in 2023 such that it was subject to Social Security and Medicare tax in 2023, but not subject to income tax in 2023. Now that it has been paid to you, it is subject to ordinary income tax but not to Social Security or Medicare tax, and should be present on Schedule 1 line 8t, treated as nonqualified deferred compensation from a 457(b) plan. The amount withheld for taxes is credited on Form 1040 line 25a.
