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.
A good rule of thumb is to keep tax records for at least three years, preferably seven. Save any important documents like W-2s or 1099s, and also any receipts for business, medical, or mortgage expenses you wish to deduct. Also, keep records of any charitable or retirement contributions.
Most bank statements should be kept accessible in hard copy or electronic form for one year, after which they can be shredded. Anything tax-related such as proof of charitable donations should be kept for at least three years.
All they need is access to your old mail, credit cards, and debit cards. "Bank statements, credit card statements and other documents that contain your personal information should never be disposed of in an insecure manner," says Debbie Guild, chief security officer at PNC Financial Services Group, Inc.
While household bills and bank statements should be kept for at least two years, and insurance documents as long as they are valid.
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%.
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.
The Declaration of Independence is one of the most important documents in the history of the United States.
Paper shredders increase security risks. You shred your documents to prevent identity theft and maintain the confidentiality of your information. But your paper shredding machine doesn't offer the most secure method for completely destroying confidential information. ... Document destruction equipment and facilities.
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.
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.
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.
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.
How long to keep: Three years. Receipts for anything you might itemize on your tax return should be kept for three years with your tax records. Try storing them in a file folder broken out based on spending categories.
Life insurance policies should be stored indefinitely and all other insurance documents should be stored safely for as long as the policies remain active.
Once you sort through the deceased person's papers and set aside the above documents, you may be left with a pile of papers. Generally, it is a good idea to shred documents that have any personal or financial information on them to lessen the risk of identity theft.
You can toss most monthly bills after you pay them, or after the payments have credited to your bank statement. If you end up needing to go back to verify anything, see if you can access past bills through online account access.
If you're holding on to papers you want to throw away but don't because you're worried about privacy, buy a shredder. If you don't have much to shred, you can take documents to select FedEx locations and have them shredded for a fee. In some areas, you can also take papers to a bulk shredder on certain days.
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.