My employer made a profit-sharing contribution into my 401k, and they are including it in my taxable income.
1) Is this contribution taxable? I think it is not taxable. The IRS says: "Your employer's contributions to a qualified retirement plan for you aren't included in income at the time contributed."
2) Since my employer has included this money in box 1 of my W-2, which I believe to be incorrect, I am planning to file a form 4852. This is the official substitute for form W-2 when that form is incorrect. I assume that the IRS has some adjudication process for this, possibly just with me, possibly with me and my employer. What will the IRS do when I file the form 4852?