An entity is leaving a controlled group and the account balances/assets in the 401(k) PSP attributable to the entity's employees are being spun-off to a new plan that the entity is setting up. Unallocated forfeitures from the suspense account are being spun-off along with the participants' accounts. Question: What do we do with the spun-off unallocated forfeitures? Do they go directly into the new account's suspense account (and are used pursuant to the terms of the plan)?, or must they be immediately reallocated among the participants in the spun-off plan. Thanks.

Why are the forfeitures being spun off?

I thought that you needed to allocate BEFORE the spin-off (to avoid doing a filing).