Does your current tax professional understand KiwiSaver retirement funds? This is an incredibly complex and frequently misunderstood area of the US tax code. In some cases, your New Zealand retirement accounts could be considered a trust by the IRS, or a Passive Foreign Investment Company. It is critically important that your retirement fund is correctly reported on your US tax return. Heavy fines exist for failure to report correctly.
KiwiSaver is a New Zealand savings scheme. New Zealand citizens or expatriates with work visas or residence visas can contribute set amounts of their income to personal accounts, which is then matched up to a specified limit by the New Zealand government and invested privately at various risk levels. The funds can be accessed after the contributor’s 65th birthday, to buy their first house, or under certain other circumstances.
At US Global Tax Ltd., our extensive knowledge of the US tax system, as well as the respective New Zealand system, allows us to correctly report foreign retirement schemes. If you’re making regular contributions to your KiwiSaver accounts and you’re curious how they will impact your tax returns under United State codes, contact us today. We’ll be happy to ensure your US tax returns are properly prepared and your KiwiSaver funds are appropriately reported. You can also learn more from our Frequently Asked Questions.
© 2020, US Global Tax, All Rights Reserved
Disclaimer: Information on this website is of a general nature and is not intended for use without professional advice.