The Deep Freeze, The Gas Stove Ban, & The "Gotcha" in Your 2026 Paycheck
- Constantine J Kitrinos, CPFA
- a few seconds ago
- 4 min read
Is anyone else tired of wearing three layers just to walk to the mailbox?
Welcome to the first update of the year. If you’ve stepped outside in Rochester lately, you know we are in the middle of the coldest winter in a decade. My car thermometer hit 2 degrees yesterday, and let me tell you—that electric vehicle range anxiety is real when the battery loses 30% of its juice just sitting in the driveway.
But while we’re all freezing, the financial world is actually heating up in some interesting ways.
In this week's podcast (Season 8, Episode 117), I shook off the rust to give you a full market update, a "kitchen table" inflation check, and a warning about a new tax rule that might have already messed up your January paycheck.
Here’s the cheat sheet for what you missed.
The Market Scorecard: The Little Guys Are Winning
Usually, we spend the first month of the year talking about big tech. Not this time. While the S&P 500 is off to a slow but steady start (up roughly 0.9%Â YTD), the real action is elsewhere.
Small Caps (Russell 2000):Â Up 6.3%. The little companies are finally getting some love.
International: Up roughly 5.8%. If you’ve been ignoring your international funds for the last five years, go take a look. You might be pleasantly surprised.
Gold & Silver: Gold is inching up, but Silver is acting like a tech stock—up ~7% already.
The Takeaway: It’s a broad rally, not just a "Magnificent Seven" rally. That’s healthy.
The "Kitchen Table" Inflation Check
Forget the CPI report for a second. What does it cost to actually live? I ran the numbers on the basics, and here is the good, the bad, and the ugly:
Gas:Â $2.87/gallon. (Actually down from last year. We'll take the win.)
Milk:Â $3.70/gallon.
Eggs:Â $3.59/dozen. (Better than the shortages of '25, but still not cheap.)
Health Insurance: This is the ugly one. If you own a home in NY and pay for your own insurance, you likely saw a 13-15% rate hike this year. You aren't crazy; the rates really did jump that much.
The "Gotcha" in Your Paycheck (Secure Act 2.0)
This is the big one I need you to pay attention to. Effective January 1, 2026, a major provision of the Secure Act 2.0 finally kicked in.
The Rule: If you earned more than $145,000 (indexed to ~$150k) in FICA wages from your employer last year, you are no longer allowed to make pre-tax catch-up contributions. The Change: Your catch-up contribution (that extra money you can put in if you're over 50) MUST be Roth.
Why it matters:
You lose the immediate tax deduction on that money.
Your take-home pay might look a little lighter because taxes are coming out now.
Check your pay stubs. If you are a high earner and your payroll department missed this, you could have a mess to clean up later.
Deep Freeze
New York News: The Gas Ban & Real Estate
If you are planning to build a home this spring, the window is closing. The "All-Electric Building Act" (the ban on gas stoves and furnaces in new construction under 7 stories) has technically kicked in for 2026, though legal challenges have created some confusion. Sounds like Kathy will have to pump the brakes on this plan, and just like the weather, this regulation will experience a Deep Freeze as well.
The on-the-ground reality: If you are breaking ground now, you might still get your gas line if your permits were filed in time. If you’re filing permits tomorrow, get ready for heat pumps and induction stoves.
Despite the cold and the laws, Rochester real estate is holding firm. The median sold price is hovering around $165k, making us one of the last affordable pockets in the Northeast—even if the bidding wars are still a headache.
2026 By The Numbers
Finally, here are the new limits for your accounts this year. If you have automatic transfers set up, log in and adjust them so you don't leave tax-advantaged space on the table.
Account Type | 2026 Limit | Catch-Up (50+) |
401(k) / 403(b) | $24,500 | $8,000 |
IRA / Roth IRA | $7,500 | $1,100 |
HSA (Individual) | $4,400 | $1,000 (55+) |
HSA (Family) | $8,750 | $1,000 (55+) |
Pro Tip: If you can, max out that HSA. It remains the only "triple-tax-free" account we have. It’s the Swiss Army Knife of retirement planning.
Oh, and one last thing - don't forget that you'll need a smart way to save, invest, and grow to enjoy all your hard work and the fruits of your labor. Make a conscious investment in yourself and watch some tips from my latest Podcast Episode, where I discuss a lot of the topics in this blog post.
If you haven't subscribed to my PennyWise Financial Podcast, watch a clip from my latest episode. You'll see topics that cover all sorts of things that tie into financial decisions or goals we plan for every day with our clients.
Scroll down a little past the clip to watch the entire episode. It's available on all major podcast platforms like Apple Podcasts, YouTube Music, Spotify, Amazon Music, and YouTube.
👇Or click below to watch the full Episode
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