• Open an Account
  • ATM / Branch
Citi logo Citi logo
  • Overview
  • Market Commentary
    • Overview
    • Family & Money
    • Insurance & Long-Term Care
    • Investing
    • Personal Finance
    • Retirement
    • Trust & Estate
  • Global Perspectives
  • Wharton Knowledge
  • Election 2020
  • Call Financial Advisor: 9am–7pm ET (M–F)
    1-877-357-3399
  • TTY: 1-800-788-6775
  • Sign on to Schedule Appointment
    • Sign On to Citi Personal Wealth Management
    • Banking
    • Credit Cards
    • Investing
    • Lending
    • Citigold®
    • Citigold® Private Client

Citi Personal Wealth Management

Numbers You Need
to Know: 2020 and 2021

Home › Financial Guidance › Personal Finance

Key numbers to consider as you ponder crucial goals

Below you’ll find key numbers to consider as you ponder crucial goals like saving enough for retirement and college expenses, amounts to give to charities, and planning for changes in your estate. Keep in mind that, while averages are interesting, your individual situation may differ. Indeed, as you think about goals such as how to save for your children’s college costs and how to limit this year’s tax bill, please consult a Citi Personal Wealth Management Financial Advisor, who can coordinate financial planning strategies with your tax advisor.

Figure 1: Cost of Living
Figure 1: Cost of Living
This chart shows the average cost of living for raising children, paying for education, home ownership, retirement, medical expenses and nursing home costs in the U.S.
Sources: Inflation-adjusted cost of raising a child by middle-income family from the U.S. Department of Agriculture’s “Expenditures on Children by Families” 2015 report (released January 2017). College costs are calculated by the College Board based on 2020-2021 academic year. National median existing-home price is from the National Association of Realtors (Q4 2020). Amount needed to cover retirement medical costs (excluding nursing-home expenses) for 65 year-old couple retiring in 2020 (source: Fidelity Investments). Nursing-home cost is the national median rate for a single year in a private room and comes from Genworth’s 2020 study.

Figure 2. Family Financial Snapshot
Figure 2. Family Financial Snapshot
This chart indicates the percentages of U.S. families who have retirement accounts, own homes and vehicles, have debt with credit card balances, mortgages or other home-secured debt.
Sources: Percentage of families holding different assets and liabilities from Federal Reserve’s 2019 Survey of Consumer Finances.
Figure 3: Taxes
2021 2020
Earnings subject to Social Security payroll tax: $142,800 $137,700
Maximum federal income-tax rate of 37% and
20% maximum long-term capital-gains rate if
income above:
$628,300 if married filing jointly
$523,600 if single
$622,050 if married filing jointly
$518,400 if single
3.8% Medicare surtax applies to net
investment income if total income above:
$250,000 if married filing jointly
$200,000 if single
$250,000 if married filing jointly
$200,000 if single
Standard deduction:1 $25,100 if married filing jointly
$12,550 if single
$24,800 if married filing jointly
$12,400 if single
Personal exemption: None None
Gift tax exclusion: $15,000 $15,000
Estate tax exclusion: $11.7 million $11.58 million
❮ Swipe left for more
This table compares some key U.S. Federal Income Tax numbers between 2020 and 2021, from payroll taxes and income tax rates to gift and estate tax exclusions.
Sources: IRS and Social Security Administration.
1. No curtailing of itemized deductions if single or married.
Figure 4: Retirement
2021 2020
Traditional and Roth IRA contribution limit.1 $6,000 ($7,000 if age 50 or older) $6,000 ($7,000 if age 50 or older)
If covered by retirement plan at work,
traditional IRA deduction phases out at:
$105,000 to $125,000 if
married filing jointly
$66,000 to $76,000 if single
$104,000 to $124,000 if
married filing jointly
$65,000 to $75,000 if single
If spouse covered by retirement plan but you,
aren't, your IRA deducation phases out at:
$198,000 to $208,000 in joint income $196,000 to $206,000 in joint income
Eligibility to fund a Roth IRA phases
out at these incomes:
$198,000 to $208,000 if
married filing jointly
$125,000 to $140,000 if single
$196,000 to $206,000 if
married filing jointly
$124,000 to $139,000 if single
401(k) contribution limit: $19,500 ($26,000 if age 50 or older) $19,500 ($26,000 if age 50 or older)
SIMPLE IRA contribution limit: $13,500 ($16,500 if age 50 or older) $13,500 ($16,500 if age 50 or older)
SEP IRA contribution limit:2 25% of annual compensation, up to $58,000 25% of annual compensation, up to $57,000
❮ Swipe left for more
This table compares retirement related U.S. Federal Income Tax numbers between 2020 and 2021, from IRA contribution limits to deduction phase out dollar amounts based upon various scenarios.
Sources: IRS and Social Security Administration.
1 There are no income eligibility limits for contributions to a Traditional IRA. But if you or your spouse are covered by a workplace retirement plan, income limits apply for deducting annual contributions. With a Roth IRA, various income eligibility limits apply. Please see the IRS website for current information: irs.gov/retirement-plans/traditional-and-roth-iras.
2 The employer makes contributions to a SEP IRA for employees. Contribution limits listed in the table are for the employer. Employee contributions are not permitted.
Figure 5: College
2021 2020
UGMA/UTMA account: Up to $15,000 without worrying about gift tax Up to $15,000 without worrying about gift tax
Kiddie tax on unearned income: First $1,100 covered by child’s exemption First $1,100 covered by child’s exemption
529 college savings plans: Can contribute $75,0001 and count it as your gift for next five years ($150,000 per married couple) Can contribute $75,0001 and count it as your gift for next five years ($150,000 per married couple)
Coverdell education savings account:
Eligibility to contribute phases
out at these incomes
$2,000 maximum contribution
$190,000 to $220,000 if
married filing jointly
$95,000 to $110,000 if single
$2,000 maximum contribution
$190,000 to $220,000 if
married filing jointly
$95,000 to $110,000 if single
Hope Scholarship/American Opportunity Credit:
Phases out at these incomes:
$2,500 maximum per student
Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
$2,500 maximum per student
Phaseout begins at $160,000 if married filing jointly
Phaseout begins at $80,000 if single
Lifetime Learning Credit:
Phases out at these incomes:
$2,000 maximum
Phaseout begins at $119,000 if married filing jointly
Phaseout begins at $59,000 if single
$2,000 maximum
Phaseout begins at $119,000 if married filing jointly
Phaseout begins at $59,000 if single
Education loan interest deduction:
Phases out at these incomes:
$2,000 maximum
$140,000 to $170,000 if married filing jointly
$70,000 to $85,000 if single
$2,000 maximum
$140,000 to $170,000 if married filing jointly
$70,000 to $85,000 if single
❮ Swipe left for more
This table compares college expense related U.S. Federal Income Tax numbers between 2020 and 2021, from UGMA/UTMA accounts, 529 plans and Coverdell savings accounts to Lifetime Learning Credits and education loan interest deductions.
Sources: IRS and Social Security Administration.
1 Five times gift-tax exclusion. Consult a tax advisor for important considerations regarding the five times gift-tax exclusion.

Related Planning Tools

  • Retirement
  • Save for a Purchase Goal

See More Content

Use the filters below to see more market commentary, useful webcasts and financial guidance content.

articles found

Video of Shawn Snyder offering his insights on investing in a post-COVID global economy

2021 Outlook - A New Beginning: Investing in a Post-COVID World

Shawn Snyder, Head of Investment Strategy, Citi Personal Wealth Management, and Juan Arana, Head of the Citi International Personal Bank U.S. Investment Lab, offer their insights on investing in a post-COVID global economy.

Video (61:27)

Video of Shawn Snyder discussing the election and potential policy implications

Washington Watch: The Potential Impact of the Election

Shawn Snyder, Head of Investment Strategy, Citi Personal Wealth Management, and Bill Rys, Managing Director of Federal Government Affairs, Citigroup, share their thoughts on what the results of the U.S. election mean for financial markets, the economy, and your personal finances.

Video (57:00)

Video of Shawn Snyder discussing the election and potential policy implications

Washington Watch: The Path to the Presidency Webcast

Shawn Snyder, Head of Investment Strategy, Citi Personal Wealth Management, and Bill Rys, Managing Director of Federal Government Affairs, Citigroup, share their thoughts on the potential policy implications.

Video (68:00)

Video of Shawn Snyder discussing how to invest in this new economic cycle

Mid-Year Outlook 2020 Webcast

Shawn Snyder, Head of Investment Strategy, Citi Personal Wealth Management, discusses how to invest in this new economic cycle with Steven Wieting, Citi Private Bank’s Chief Investment Strategist and Chief Economist.

Video (59.19)

Explore Citi Benefits

Market Insights are only one of the many benefits you get as a client.

Item 1 through 3 of 6
  • someone touching a tablet with their finger

    Personalized Financial Guidance

    Collaborate with your dedicated team to create a personalized financial plan around your life’s “what ifs” using Citi Wealth Advisor, Citi Personal Wealth Management’s digital financial planning solution.

    Learn More on Personalized Financial Guidance

  • man and woman on couch looking at tablet

    Ways to Invest

    Citi offers a range of investment and insurance products and services that can help you work toward your financial goals. These products include individual stocks, fixed income and mutual funds, as well as more sophisticated offerings like alternative investments and structured products.

    Learn More on Ways to Invest

  • screenshot of mobile phone displaying charts

    World-class Investment Capabilities

    Gain access to Citi Personal Wealth Management’s world-class investment platform, including a breadth of product choices and research from hundreds of analysts globally.

    Learn More on World-class Investment Capabilities

Contact Us


Find a Citi Personal Wealth Management
Financial Advisor

Call: 1-877-357-3399 | 9am – 7pm ET (M–F)

Investment Services: 8am – 9pm ET (M–F) | 9am – 7pm ET (Sat)

Locate an Advisor

Contact your Dedicated Team

Call: 1-800-321-2484 | TTY 1-800-788-6775
or Sign on to schedule an appointment.

Logo: Citi - Welcome what's next
INVESTMENT AND INSURANCE PRODUCTS: NOT INSURED BY THE FDIC • NOT INSURED BY THE FEDERAL GOVERNMENT OR ANY OTHER FEDERAL GOVERNMENT AGENCY, BY THE BANK, OR BY ANY AFFILIATE OF THE BANK • NOT A DEPOSIT OR OTHER OBLIGATION OF, OR GUARANTEED BY, THE BANK OR AN AFFILIATE OF THE BANK • SUBJECT TO INVESTMENT RISK, INCLUDING POSSIBLE LOSS OF THE PRINCIPAL INVESTED
Citi logo

Important Information

The market and planning commentary on this site may discuss topics that are timely to current events at the time they were written or filmed. The relevance of such topics may change at future dates.

Please consult your Financial Advisor before making any investment decisions.

The above content is for informational purposes only and contains a summary of the topic and is not intended to be a comprehensive discussion, including any legal or tax ramifications of the strategies or concepts described herein.

Citigroup Inc. and its affiliates do not provide tax or legal advice. To the extent that this material or any attachment concerns tax matters, it is not intended to be used and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.

Citi Personal Wealth Management is a business of Citigroup Inc., which offers investment products through Citigroup Global Markets Inc. (”CGMI”), member SIPC. Citigroup Life Agency LLC (“CLA”) offers insurance products. In California, CLA does business as Citigroup Life Insurance Agency, LLC (license number 0G56746). Citibank, CGMI, and CLA are affiliated companies under the common control of Citigroup Inc.

©2021 Citigroup Inc. Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world. 1/21

Privacy | Notice at Collection | CA Privacy Hub