So I did talk with TIAA. They claimed that the IRS made them do it. And what they claim the IRS made them do is... book the annual OID based on their US CD rate, not based on the underlying instrument (i.e. foreign currency). They disclosed the currencies and the changes in the applicable exchange rates for the 5 year term. They lost about 5% collectively. I walk away with a zero return. And that's the attractiveness of what they sell. Have the upside risk of the foreign currencies, with none of the downside risk. I imagine that they invested the funds in the foreign markets for free for 5 years, and paid me back in USD, but kept their investments to liquidate at a future point in time.
They couldn't explicitly advise what to do with my OID accrual on record with the IRS, but they 'blinked three times' (LOL) when I said that I would take a capital loss on Sched D. Little scared to do this without the proper 1099 documents being supplied to the IRS, but I guess that's what is happening with crypto these days.
