T4 Code 66 — Eligible retiring allowance
Severance eligible for transfer to an RRSP without RRSP room — limited to $2,000 per year of pre-1996 service.
At a glance — Code 66
- Box name
- Eligible retiring allowance
- T1 line
- Line 13000 — Other income (or excluded if transferred directly to RRSP)
- Check against
- Your years of service with the employer before January 1, 1996 (and 1989 for the second tier).
What Code 66 means
Code 66 is the "eligible" portion of a retiring allowance (severance or termination pay). It can be transferred directly to an RRSP without using RRSP contribution room, subject to the eligible-amount cap.
Cap: $2,000 per year of service before 1996, plus an additional $1,500 per year of service before 1989 where the employee was not a member of an RPP or DPSP. Service after 1995 does NOT generate eligible amount — making Code 66 increasingly rare for younger workers.
The non-eligible portion (service after 1995, or amounts above the cap) appears on Code 67 and counts as regular income.
Tax return implications
- If transferred directly to RRSP (not through your hands), employer does not withhold tax and the amount is not on Line 10400.
- If paid to you and then contributed to RRSP, claim the direct-transfer deduction on Line 20800.
- Reduces immediate tax — often the single biggest tax-planning opportunity in a severance package.
FAQ
Can I still get an eligible retiring allowance if I started working after 1995?
Usually no. The eligible portion requires years of service before 1996. Workers who joined after 1995 will have $0 under Code 66 and the full severance under Code 67 (non-eligible).
Related T4 boxes
Code 67 — Non-eligible retiring allowance
Severance portion not eligible for direct RRSP transfer — fully taxable, but may still use regular RRSP room.
Code 71 — Indian (exempt income) — employment
Employment income exempt from tax under §87 of the Indian Act — reported for information only, not added to taxable income.
Code 77 — Workers' compensation benefits repaid to the employer
WCB top-up you repaid to your employer — creates an offsetting deduction at Line 22900.
Box 14 — Employment income
Your total gross employment income for the year before any deductions — salary, wages, bonuses, commissions, taxable benefits and most other pay.
Filing your return? Use the payroll deductions calculator to verify the amounts on your T4 match expected CPP, EI and income tax withholdings, and the income tax calculator to estimate your refund or balance owing.
Sources
T4 box definitions from CRA T4 employer guide. Rates and thresholds current for 2025; file your 2025 T1 by April 30, 2026 (self-employed June 15).