When I add $200K in RRSP w/d to my wife's return, TT suggests optimizing our returns by splitting MY pension 50/50 thus raising her income even more. Is this a flaw?
Our 2013 returns have been tiled. I was using TT to "simulate" what would happen if my wife were to withdraw RRSP funds. It is counterintuitive to think that increasing her income with RRSP withdrawals would trigger a suggestion for me to split my pension and therefore further increase her income and, of course, income taxes. What gives with this?