@TomSF , my intial reading of how the Kiwi saver scheme works ( with contributions from employee, employer and the Govt. ) and the control that Inland Revenue exerts, to me it seems to be a cross between Social Security and self- directed 401/403 tax advantaged savings meant for retirement. So , US should not be taxing the growth till the funds are distributed to the recipient. This is true also because the gains are not available to the recipient / beneficiary. Therefore , I do not see any reason to recognize these earnings till distribution is taken. I will also take the time to read the US-NZ tax treaty to see if my position should change -- absent that I hold by position -- NOT taxable at this time.
Furthermore it should not come under FBAR or FATCA either because it is not a specified financial asset ( it is not available , it is constrained till she retires ) Nor FBAR because it is not a liquid bank account. No different than a 403 or a 401 K account
