Line 130 - Lump-sum payments

Include lump-sum payments from pensions and deferred profit sharing plans you received when you are 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 your lump-sum payment includes amounts you earned in previous years, you have to include the whole payment on your return for 2006. However, you can ask us to apply a reduced tax rate to the part that relates 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 69 or younger at the end of the tax year that you make the transfer.

Completing your tax return

On line 130, enter the amounts from box 18 of your T4A and box 22 of your T3 slips.

Forms and publications

• General Income Tax and Benefit Guide
• RRSPs and Other Registered Plans for Retirement guide (T4040)
• When You Retire pamphlet (P119)

Related topics

• Seniors
• RRSP
• Retroactive lump-sum payments