@dsyhome0510 , major mistake on my part on the taxability of CPF and foreign Mutual Funds. The comments on FBAR ( FinCen 114 ) and FATCA ( IRS 8938 ) are still valid. Admitting my error ( only explanation is that I was lulled by the FBAR / FATCA question )and , while logical, forgot that because Singapore does not have a tax treaty or Totalization agreement with USA ,
1. Life Insurance entity would be classed as Passive Foreign Investment Company ( PFIC )
2. Singapore CPF , while compulsory / having some of the features of SSA in US and 401(K) in otherways, would still be classed as more akin to PFIC.
Thus in both these cases the Mark to Market ( MTM) apply i.e. you must recognize the yearly gains ( from earnings and not contributions ) --- it is like you sold the asset at the end of the year and bought the assets back on the first of the next year. Your US basis changes every year ( for US tax purposes ).
I sort of remember having answered this topic earlier.
Please consider using a Tax Professional familiar with international taxing esp. PFIC / MTM for this year. Thereafter you should be able to do it yourself without any issues.
If you need more on this , please leave a note and I will circle back.
Please forgive my memory failure -- I am 82 and given to senior hours quite often
pk
