The citizenship or location of the beneficiaries of a 401(k) is not really a problem. The general rule is that at your death, your parents will have the option to take out or stretch the withdrawals over their own lifetimes if they transfer the 401(k) into an inherited IRA. However, you need to check your 401(k) plan because it needs to allow the transfer of a 401(k) into an inherited IRA. Not all of the plans allow it. Depending on where your parents live and whether there is a tax treaty...