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.
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.
Your best option is to shred any documents that contain sensitive information before tossing them. Either invest in a shredder for your home or utilize a professional shredding service. You will likely pay a fee for this service, but it's a small price to keep your personal information safe.
How long must a bank keep canceled checks / check records / copies of checks? Generally, if a bank does not return canceled checks to its customers, it must either retain the canceled checks, or a copy or reproduction of the checks, for five years.
According to the IRS, it generally audits returns filed within the past three years. But it usually doesn't go back more than the past six years. Either way, it can be a good idea to keep any credit card statements with proof of deductions for six years after you file your tax return.
Utility Bills: Hold on to them for a maximum of one year. Tax Returns and Tax Receipts: Just like tax-related credit card statements, keep these on file for at least three years. House and Car Insurance Policies: Shred the old ones when you receive new policies.
You can order copies of your statements beyond what is available online, up to 7 years ago. Your statement copy will be delivered online, free of charge. If you are an Online Banking customer, you can sign into Online Banking, and select Statements & Documents under the Accounts tab.
Like your mortgage payment statements, you should keep any paperwork on your refinance for at least 3 years. Although, some professionals might recommend keeping it for at least 10 years.
Is it safe to throw away old bank statements, or do you need to shred them first? According to the Federal Trade Commission, you should shred documents containing sensitive information, including bank statements, to protect yourself from identity theft.
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.
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.
You should definitely keep the letter telling you that your loan was paid off in full. We'd also want you to keep at least the most current loan statement, the “payment in full” letter and a copy of the satisfaction of mortgage after it has been recorded.
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.
Tax returns and supporting documents (keep for at least three years, but ideally up to seven) Pay stubs (keep for at least six months, but ideally up to one year) Social security statements (keep current copies) Year-end retirement fund statements (keep current copies)
The period requiring record documentation could go back many years, and banks typically only retain records for seven years (as little as two years for certain items).
Bank statements and utility bills do not have to be kept for any specific period of time, if you are not self-employed, but again it can be useful to keep these kinds of records for at least two years, if not longer.
These programs mandate that banks obtain and retain checking and savings account customer data, including contact, identification and tax information. FDIC regulations stipulate that banks must keep this information for five years after the account is closed.
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.
Once you submit the return, shred those stubs and statements. After filing, go back 3 years to shred the old tax return forms, W-2s, 1099s, K-1s, canceled checks, receipts for charitable contributions, and other information used in past taxes.
You will usually receive a new set of policy documents annually, or in some cases, semi-annually. Once you have received these, it is no longer necessary to keep the old ones. It should be standard practice for you to file the new copies at the same time you discard the old ones.
Keep for 1 Year
Monthly Credit Card Statements: Keep these for 1 year, unless you have your own business and have purchased items with your credit card, then you would keep the statement for 6 years. Monthly Mortgage Statements: Reconcile with your annual statement and then shred.
Old Bank Statements
Even if they're old bank statements, they should be shredded. Your name, address, phone number and bank account information are in those statements, along with your habits, purchases and banking history. Even if the account is closed, shred it anyway.
Should you pass away within the term of the policy, your family will receive a lump sum which they can use to pay off the outstanding mortgage balance on your house. With this type of life insurance, as you pay off your mortgage over time, the eventual pay-out decreases.