The amount in box 11 should have been the same as the amount in box 1. These types of plans are considered nonqualified plans and, as such, are taxed as wages on a W-2 not as retirement income on a 1099-R. The Box 11 amount tells us that its from a deferred compensation plan and, therefore, isn't earned income. This excludes the income from things such as calculations for the earned income credit.
Somewhat confusing, though, is that RMDs don't typically apply to 457f plans (but they do to 457b plans).
It sounds like they began distributions based on their plan rules and that $40,000 was the gross distribution and $20,000 was the net distribution after withholding taxes (though that seems a bit high).
All of the money deferred to the plan will be taxed as "nonqualified" coming out, unless some of it was previously taxed. For that information, as suggested above, VOYA should be able to assist.
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