To all: I did have to declare as income as it is deferred income. I received a 1099-R and the boxes had all the information TurboTax needed to know how I needed to be taxed. Most 457 plans, if not all, are considered taxable once you draw the money out. I only state "if not all" since I am not completely versed in all the varieties of 457 plans but if you need to pay tax it will show on the 1099-R.
