Line 130 - Lump-sum payments

This type of income includes lump-sum payments from pensions and deferred profit-sharing plans received when leaving a plan.

The amounts should be shown on these slips:

• T4A, Statement of Pension, Retirement, Annuity, and Other Income
• T3, Statement of Trust Income Allocations and Designations

If in 2016 you received a lump-sum payment that included amounts you earned in previous years, you have to report the whole payment on line 130 of your return for 2016. However, you can ask us to apply a reduced tax rate to the part relating to amounts you earned before 1972 by attaching a note to your paper return. We will tell you the results on your notice of assessment or notice of reassessment.

If your lump-sum payment is shown in box 22 of a T3 slip, you may be eligible to transfer this amount to your registered retirement savings plan (RRSP). You must do this within 60 days of the trust year-end and only if you were 71 or younger at the end of the tax year that you make the transfer.

Completing your tax return

Report on line 130 the amounts shown in box 018 of your T4A slips and box 22 of your T3 slips.

Forms and publications

• General income tax and benefit package - Guide, return and schedules
• Guide T4040, RRSPs and Other Registered Plans for Retirement

Related topics

• Seniors
• RRSPs and related plans
• Qualifying retroactive lump-sum payments

Date modified:

2017-01-04