Retirement tax questions

This is a categorically wrong answer.  It is deferred income; at the time it was deferred, you didn't get the money and it completely bypassed your earnings statement.  You didn't pay taxes on it.  The money remained an asset of the employer. ("substantial risk of forfeiture")  So it IS earned, presumably many years later, when you get distributions from the 457.  It will be reported as taxable wages.