Apparently there is a new member of a control group as of 2005 that is a part of the same profit sharing plan as a larger member of the control group. The new group has never made an employer contribution on behalf of its members. The larger group has not made a contribution since this new group entered the plan. However, there have been forfeitures attributed to the older group. Should those forfeitures be allocated to everyone including the new members of the plan? I could have my terminology/understanding off but my understanding is that these two groups are part of the same plan now with separate decisions about employer contributions.

Any possibililty that the new group is just part of the controlled group, but not an adopting employer under the Plan?

What david rigby is so gently getting at is the old refrain on these Message Boards: check your plan document--here to make sure that the new group is in fact part of the plan, such as by the definition of employer as encompassing any other members of a control group to which the older, big group is a member. If the new group is not, then the reallocation would be appropriately limited to plan-eligible employees of the old, big group. However, if that is the case, the new, small group's employees would yet be considered in the testing pool because of the control group rules.