Inherited IRA

cat · Post by **cat** » Mon Feb 28, 2011 6:40 pm

I am a US citizen and permanent resident of Canada. My 78 year old mother passed away in January and I am the beneficiary of a $15,000 IRA she has invested in Mutual Funds. Her investor told me I can take it out and be taxed on it as regular income or leave it in the investment and take the minimum distribution for the year.

I have not had any other investments in the US other than a regular money market savings account. I am not sure what I should do or if I can even leave the IRA investment as a tax -deferred investment. Any suggestions?

nelsona · Post by **nelsona** » Mon Feb 28, 2011 8:49 pm

I would simply take the money and pay the tax in US and canada and be done with it.

You have been filing your US returns every year, yes?

cat · Post by **cat** » Mon Feb 28, 2011 9:29 pm

Mais oui.., 1040, 2555, 8891, 9022 :) but next year will be tricky - I will surely need help when the rest of the estate is settled.

nelsona · Post by **nelsona** » Tue Mar 01, 2011 4:48 pm

Not as a beneficiary. The estate has extra tax reporting burden, but not you.