Spin-off from ESOP plan

[cpc0506]

I have a new client that has taken the 401k assets that were part of a KSOP and established a new 401k plan with these assets. THe only money left in the KSOP are employer securities/cash that are Profit Sharing. Match or old Money Purchase Money.

They established a new 401k plan with a new plan number 002, but listed the effective date of the plan the orignal effective date of the KSOP? Does this seem correct? Is that how a spin-off is handled?

The new 401k plan will also accept any profit sharing/match/money purchase funds that an employee chooses to diversify (when eligible to do so). Are these rollovers to the 401k plan considered 'related rollovers'? Do they carry J&S if the funds are from the Money Purchase piece of the ESOP?

Thanks for any guidance you can provide.