My 2026 financial resolution

Here are my 2026 financial resolutions.

Contribute to IRA using backdoor Roth

In 2026, the IRA contribution limit increased to $7,500 (from $7,000). I will max out both for my wife and me.

Contribute to HSA

In 2026, the HSA contribution limit (family) has increased to $8,750 (from $8,550). Since I have two HSAs (one for my workplace and one with Fidelity), I will wait to contribute the last few hundred dollars to Fidelity to avoid over-contributing (since my workplace HSA sometimes offers additional benefits).

Donate stocks with capital gains to my kids’ UTMA accounts

Donating stocks lets me realize up to $1,350 in capital gains tax-free by using this loophole:

• The annual gift tax exclusion limit is $19,000 ($38,000 for married couples filing jointly) (see here).
• Child’s unearned income above $2,700 is taxed at parent’s rate (see here).
• Standard deduction for a dependent is $1,350 (see here).

Therefore, if the market value of the stocks I donate is less than $38,000 and capital gains are less than $1,350, the child does not need to pay any tax.

Use 529 funds wisely

Since July 2025, the K-12 qualified expenses for 529 plans have significantly expanded (see here). I will keep track of my expenses in a spreadsheet.

Pay off credit card debt

In 2025, my wife and I have racked up around $50,000 in credit card debt. This may sound insane, but actually, it was on purpose. We each opened the Capital One Quicksilver card, which offers 0% APR for 15 months and 1.5% cashback on all purchases. We used this card to pay taxes and purchase stuff for our bathroom remodeling project. I have been saving cash using Treasury bills (to avoid state income taxes), so we saved over a thousand dollars from the interest rate arbitrage. (However, my credit score declined from 840 to 790 by racking up credit card debt, though I don’t regret it.)

Downgrade American Express Blue Cash Preferred card

In this post, I mentioned that the AAA Daily Advantage Visa Signature card dominates the American Express Blue Cash Preferred card for groceries. I will downgrade the Amex card to one without an annual fee before the renewal date so that I can keep the long credit history (since 2010).

Use credit cards optimally

I will use my credit cards optimally.

• American Express Platinum Card for flight tickets booked directly with airline or through American Express Travel (5%) and prepaid hotels booked through American Express Travel (5%).
• American Express Blue Cash Preferred Card for groceries (6%) and transit (train, bus, parking, rideshare, etc.; 3%).
• Costco Anywhere Visa Card for Costco gas (5%), other gas and EV charging (4%), and dining (3%).
• AAA Daily Advantage Visa Signature Card for Costco (3%) and pharmacies (3%), and if I cancel the American Express Blue Cash Preferred card, then groceries (5%).
• Capital One Quicksilver Card for hotels, vacation rentals and rental cars booked through Capital One Travel (5%).
• Fidelity Rewards Visa Signature Card for any purcahse (2%).