Transfering an inherrited IRA to an over seas account?

Question

I inherrited an IRA from my mothr around 8 years ago and I want to use the funds to help buy my first apartment. I have heard that if I take money out of it I have to pay income taxes. Can I transfer it to an overseas account and avoid paying the taxes. THere really is not a lot of money there, but every dollar helps.
I am an American living in a foreign country.

Answer 1

You cannot transfer money to an overseas account and avoid taxes, since US income tax is on world-wide income.

Is this money still in your mother's IRA? You are required to take distributions from the inherited IRA as described in IRS Pub 590 for the year you inherited the IRA. If you have not taken required distributions, the amounts required to be distributed are subject to a 50% excise tax in addition to income tax.