| Some documents and records need to be kept indefinitely, but most can be discarded after a prescribed period. Here are some rules of thumb as to how long you should keep them. Keep in mind that certain circumstances – legal considerations, for instance – dictate that documents be kept longer. The basic rule is: When in doubt, don’t throw it out. If you have any questions, check with your financial advisor.Table of ContentsKeep IndefinitelyKeep for a Prescribed PeriodThrow Out Now Some documents and records need to be kept indefinitely but most can be discarded after a prescribed period. Here are some general rules of thumb as to how long you should keep them. Keep in mind that there may be individual circumstances in which legal considerations, for instance, dictate that documents be kept longer. The basic rule is: When in doubt, don’t throw it out. If you have any questions, check with your financial advisor.Keep IndefinitelyBirth certificatesAdoption papersCustody agreementsDeath certificatesDeeds to propertyDivorce papersList of financial assets held (keep current)Wills and other estate planning documentsLife insurance policiesList of previous employersMarriage certificatesPassportsPhotographic or video record of house and household contentsMilitary records / record of any governmental employment (e.g., armed forces)Tax forms and supporting records relating to non-deductible IRA contributionsRecords of paid mortgagesBack To TopKeep for a Prescribed PeriodIncome tax returns (note that the IRS can audit you for 3 years after you filed a tax return, 6 years if you’re self-employed or under reported 25% of your income, and if you don’t file a return at all or filed a fraudulent return, there is no limit on the statute of limitations)Records supporting income tax returns and deductions (W-2s, 1099s, receipts) – 1 year, 3 years if used for tax purposes and 6 years if self-employedLoans that have been paid off (canceled notes or other evidence) – 7 yearsBank statements – 1 year, 3 years if used for tax purposes and 6 years if self-employedBrokers’ confirmation slips for stock and mutual fund purchases – until security is soldRecords of selling a stock – 3 yearsCanceled checks – 1 year, 3 years if used for tax purposes and 6 years if self-employedContracts – 7 years after expirationMedical bills – 3 yearsCredit card statements – Until the monthly bill is marked paid, but keep 1 year, 3 years if used for tax purposes and 6 years if self-employedUtility statements – Until the monthly bill is marked paid, but keep 1 year, 3 years if used for tax purposes and 6 years if self-employedPay stubs – 1 year, until you received and reconciled with annual W-2 and social security statementReceipts for home improvements that can be added to tax basis of home – 6 years after home is sold in a transaction that is not a “rollover” transactionInsurance papers (all types of insurance) – after policy is renewed or 4 years after expiration or cancellationRecords of selling a house – 3 years after paid offOwners’ manuals for appliances – until item is discarded or soldReceipts for major warranted purchases – until item is discarded or soldWarranties and extended service agreements – until expirationProperty tax records and disputes – 6 years after home is soldVehicle records (title, registration, purchase receipt, repairs and maintenance recipets, etc) – until soldSavings bonds – until cashed inBack To TopThrow Out NowOwners’ manuals and warranties for appliances and cars you no longer ownReceipts for credit card purchases if not major or related to a tax deduction – after reconciling with monthly credit card statementsATM receipts – after reconciling with monthly bank statementsSales receipts (unless used for tax purposes, then 3 years if used for tax purposes and 6 years if self-employed)Back To TopAlso See…Saving Money: 10 Major Ways To Increase Your Nest Egg Document Locator System: A Handy Aid For Keeping Track of Your Records Other Situations: Frequently Asked Questions Becoming A Millionaire |
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Deltona, FL - Accounting Firm 