Several factors affect how long you should hold on to bank and credit card statements. In most cases you should save them at least until you've filed taxes for that year and resolved any pending fraud disputes, but storing them away for longer may pay off in the future.
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.
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.
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.
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.
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.
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).
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.
Because of the issue of identity theft, it is not safe to throw away receipts, junk mail, and other documents containing sensitive personal information. Identity thieves can rifle through your trash or recycle bin, steal your information, and use it to launch fraudulent and criminal attacks on you.
Credit card statements and utility bills are documents that should be high on anyone's list for shredding. Bills of that nature tend to have very sensitive information. So once payment is confirmed and you no longer need to reference that bill, make sure the document is destroyed.
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.
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%.
State Laws. State laws vary, but generally require insurance agents to keep copies of their customer's policies for 6–7 years. Since a nonprofit can't always count on having access to the insurance agent's files when needed, each nonprofit should also maintain copies of expired policies.
How long you keep them beyond that is up to you. Some people recommend keeping checkbook registers for at least 12 months in case “issues” (questions about payment) arise and because some checks may take a while to clear.
For any deposit over $100, banks must keep records for at least five years. Banks may retain these records for longer periods if they choose to do so.
In general, you should keep pay stubs for up to a year, then it's considered safe to throw them away. Make sure you properly shred them so no one can get ahold of your old pay stubs and glean personal information you don't want public.
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.
Many people stuff their credit card agreements in a drawer or accidentally toss them. But if you have a question or there is a dispute, having your cardholder agreements on hand can be essential. “You should also save your cardholder agreements and any changes to your agreements that are mailed to you.
You must be able to produce receipts, invoices, canceled checks or bank records that support all expense items. You should also keep sales slips, invoices or bank records to support all income items. These records should be retained for at least 10 years after they have expired.
Bank statements are important to verify debit and credit activity. They should be kept in hard copy or electronic form for one year. Your bank will allow you to access your statements for at least one year online (most banks keep them for five years or more!)
The IRS recommends holding onto your tax returns for seven years if you filed a claim for a loss of worthless securities or a bad debt deduction, and you should hold onto your tax paperwork indefinitely if you did not file a return for a given year or if you filed a fraudulent return, which again, you're hopefully not ...