I worked in the US for 3 years and when I quit and moved home to Canada my 401K from work was moved into an IRA. It has been 5 years since I moved and now I am beign told that I cannot hold the IRA because I have a Canadian address. If I have to liquidate it and move the $$$ to Canada I will be taxed which I want to avoid. I am looking for someone with some knowledge of this subject who can advise me of my options. My investment company can't seem to give me a straight answer.

Thanks

Who is your investment company? There is no rule that foreign nationals must liquidate their US-based IRA just because they don't have a US address. However, not all institutions are set up to deal with this. I suggest that instead of taking the funds you do a rollover to an IRA with another house that accepts accounts for non-US people. Fidelity for example will let you roll your old account to a new IRA with them.