Generally UK taxing authorities
may not have any information about your abroad income unless you report that on your tax return,
That is your responsibility to determine which income is taxable and repeatable and prepare your tax returns
When you transfer funds from the tax deferred retirement account to the inherited IRA - that be account must be specially titled - not just in your name.
Inherited IRA must be designed as IRA account and must be titled similar to " (deceased ) Inherited IRA for benefit of , Beneficiary."
For me that option looks preferable because -
- funds in this account are treated as tax deferred
- you will continue to defer earnings
- will be able to avoid large tax liability
- you might need that large amount immediately - so may view that as an investment.
However - your circumstances might be different or might change any time soon. Thus you might need rather large amount of cash for some personal reasons.
You might plan to move into the US - and could be taxed as a resident after that.
There might be other circumstances I would not be able to imagine which do influence your decision.
Fortunately of unfortunately - there is no clear cut answer.