One of the main "unknowns" for many US citizens in New Zealand, is the impact that KiwiSaver can have on their US tax filing obligations. This does lead many to avoid enrolling for KiwiSaver, and thus missing some of the benefits.

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Whilst it is true that KiwiSaver does indeed add a significant amount of tax forms which need to be filed to the IRS each year, it can still be beneficial to hold.

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A more technical explanation is available here.

What reporting does the IRS require for KiwiSaver?

To answer this question here is a little more difficult. The filing obligations for a US citizen who holds KiwiSaver can vary based on a number of factors such as:

• Rate of contributions

• Funds invested in

• Whom you are employed by

For many, KiwiSaver does at a minimum create a trust filing obligation each year, and sometimes foreign investment reporting also.

Getting things right with KiwiSaver isn't easy, and it is essential to work with a New Zealand based US tax professional to ensure that you are reporting KiwiSaver correctly and investing wisely.

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KiwiSaver is little known outside of New Zealand, and many overseas professionals are unfamiliar with the financial and legal structure of the account. By working with experts such as The US Tax Team, we are able to advise on minimising the impact that KiwiSaver has on your annual tax filing obligations, as well as ensuring tax efficiency.

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We assist clients with KiwiSaver through both tax advice and tax return preparation.

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Contact us today to learn more.