To be on the safe side, McBride says to keep all tax records for at least seven years. Keep forever. Records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept indefinitely.
We've looked at documents that are okay to throw away after a specific time, but there are plenty of documents you should hold on to indefinitely. Important papers to save forever include: Birth certificates. Social Security cards.
NOTE: A payee must save records for at least two years plus the current year and make them available to SSA upon request.
Retirement/ savings plan statements, Credit card records and bills are records that should be kept for at least a year. Keep quarterly retirement/ savings statements until you receive your annual summary.
KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
To be on the safe side, McBride says to keep all tax records for at least seven years. Keep forever. Records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept indefinitely.
In general, 401k plan records must be kept for a period of not less than six years after the filing date of the IRS Form 5500 created from those records.
For tax purposes, you'll want to hang onto your 401(k) statements for at least seven years. However, it's a good idea to keep your 401(k) statements for as long as you have money in the account.
Keep records for 3 years from the date you filed your original return or 2 years from the date you paid the tax, whichever is later, if you file a claim for credit or refund after you file your return. Keep records for 7 years if you file a claim for a loss from worthless securities or bad debt deduction.
Hold the returns and supporting documents for at least seven years. The IRS can randomly audit you three years after you file — or six years afterward if it thinks you skipped out on reporting your income by at least 25%.
For workers age 60 and older who do not have a my Social Security account, we currently mail Social Security Statements three months prior to your birthday.
Keep them as long as needed to help with tax preparation or fraud/dispute resolution. And maintain files securely for at least seven years if you've used your statements to support information you've included in your tax return.
Documents to keep for ever
*Marriage/birth/death certificates, wills, house deeds (if you've paid off your mortgage), and adoption records are only issued in paper form. Losing any of these is a major hassle and can be costly to replace. Keep the paper copies in a locked and fire-resistant security box.
Since Medicare and Social Security records are so important and do not take up much space, it's best to stay on the safe side and hold onto them for at least six years.
If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw. Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary; if everything matches up, then shred the quarterlies.
You should keep the monthly or quarterly brokerage financial statements for both retirement and non-retirement accounts until you get your annual statement. The same holds true for mutual fund statements.
From your actual policy, the declarations page is the most important to be able to find. Statements regarding your payment of insurance are likely only relevant for tax purposes. To be safe, you might want to hold onto them for seven years in the event of a tax audit from the IRS.
The Declaration of Independence is one of the most important documents in the history of the United States.
Home, auto and umbrella policies - Keep until you get your new policy. For auto insurance, most states accept electronic versions of your insurance card, but it may also be smart to keep a printed version in your glove compartment.
Expired credit and identification cards including driver's licenses, college IDs, military IDs, employee badges, medical insurance cards, etc. (If your shredder can't handle plastic, cut up cards with a scissors before discarding them.) Expired passports and visas.
The best practice is to keep the policies forever. If you are confident that you will not have any claims brought against you for latent matters, a good rule of thumb is to keep the policies for six years. Nearly all potential claims will have expired within this timeframe.
No, you can't, at least in the U.S.. The FDIC (Federal Deposit Insurance Corporation) requires that bank records be kept for 5 years. Anything older than that is shredded.