I have this account when I worked overseas for over 10 years and it was mandatory to participate in the plan (Local Gov. mandate). After becoming US resident I started to report this account on my tax returns filling out 8938 and taking this account pretty much as a regular bank account and the gains reported as income and paying taxes on gains despite they are not eligible to any distribution because the legal age to withdraw money is 62.
In 2022 this account lost value due to the whole economic crisis (lost value in local currency not necessary to the exchange rate). Now I don't know how can I report losses if I haven't sold the assets. I feel this is a vicious cycle where we pay if it gains but cannot claim losses because the assets are still under my name and haven't been cashed.
If I put the loss amount in the field available for gain/losses instead of the field for interest, the program does not change the amount of my return. is this because my gains in the US are higher than the foreign losses?
I cannot use dividends because the plan is not a stock plan.
Thank you for any help on this matter. unfortunately there is no hope on having a tax treaty with the country that I am originally from. I don't want to do anything wrong on my return. any advice is appreciated
