The neural dynamics underlying brain activity are critical to understanding cognitive processes and mental disorders. However, current voxel-based whole-brain dimensionality reduction techniques fall short of capturing these dynamics, producing latent timeseries that inadequately relate to behavioral tasks. To address this issue, we introduce a novel approach to learning low-dimensional approximations of neural dynamics by using a sequential variational autoencoder (SVAE) that learns the latent dynamical system. Importantly, our method finds smooth dynamics that can predict cognitive processes with accuracy higher than classical methods, with improved spatial localization to task-relevant brain regions.