Inheirited 403(b)'s, Canadian citizen

[daboomer]

My mother recently passed away and held a couple of 403(b) accounts, from which she had been taking RMDs. My father predeceased her and due to the contingent beneficiary designation, I am now the beneficiary of her accounts. My mother was Canadian citizen and so was I.

I have been offered a few options by the company holding the accounts.
1) Take a lump sum payment
2) Take distributions from account periodically
3) Transfer to inherited/beneficiary IRA

I am not in need of the funds (I am 37) and would like to defer taxes a long as possible, so I am inclined to either 2) or 3). I do not have any additional RRSP room. One of the accounts will only allow a transfer to an inherited IRA and will not allow distributions to be taken.

Any recommendations on what I should do?

Can I maintain an inherited IRA or deceased 403(b) as a Canadian citizen and benefit from tax deferral or should I take the lump sum?

Are their potential tax implications and pitfalls associated with inherited IRAs held by Canadians? Can Canadians hold inherited IRAs?

Thank you.

[nelsona]

All these options are viable for a Cdn living in Canada.

You will be taxable in Canada (and 15% in US) on every penny from that inheritance, because it was not structures correctly. You will just have to choose, where you have a choice, which way is more palatable for you

The ESTATE should have been the beneficiary, and you would have received the proceeds in one lump-sum, with any tax paid by the estate, and none by you.