How long should I keep my Financial Records?Submitted by Clarity Capital Partners on April 19th, 2016
There's a fine line between keeping financial records for a reasonable period of time and becoming a pack rat. A general rule of thumb is to keep financial records only as long as necessary. For example, you may want to keep ATM receipts only temporarily, until you've reconciled them with your bank statement. But if a document provides legal support and/or is hard to replace, you'll want to keep it for a longer period or even indefinitely. It's ultimately up to you to determine which records you should keep on hand and for how long, but here's a suggested timetable for some common documents.
One year or less:
- Bank or credit union statements
- Credit card statements
- Utility bills
- Annual insurance policies
- Paycheck stubs
More than one year:
- Tax returns and documentation
- Mortgage contracts and documentation
- Property appraisals
- Annual retirement and investment statements
- Receipts for major purchases and home improvements
- Birth, death, and marriage certificates
- Adoption papers
- Citizenship papers
- Military discharge papers
- Social Security card
*The IRS requires taxpayers to keep records that support income, deductions, and credits shown on their income tax returns until the period of limitations for that return runs out--generally three to seven years, depending on the circumstances. Visit irs.gov or consult your tax professional for information related to your specific situation.
© Copyright 2006-2016 Broadridge Investor Communication Solutions, Inc. All rights reserved.