If you are anything like me you probably have a massive pile of really important papers shoved into files and cabinets. I never know quite what needs to be kept and for how long. It becomes quite the chore when tax season rolls around and I need to sift through all these papers. I’m really worried that one day I’ll accidently throw out something really important thinking it is just another receipt. This has spurred me to figure out exactly what I need to keep and for how long and come up with some similar storage solutions. Here’s hoping this works and helps me out with my own security solution.
|
Emergency Kit |
Filing Cabinet |
| Birth/death certificates | Tax returns |
| Social Security cards | Credit card statements |
| Passports | Medical records |
| Emergency contact information (insurance agents, doctors, family) | Retirement savings statements |
| Marriage certificates/divorce decrees | Investment records |
| Wills | Bills |
| Copies of your driver’s license, green card, and other identification cards | Paycheck stubs |
| Copies of lifesaving prescriptions (like insulin, asthma inhalers, etc.) | Bank statements |
| List of bank account and credit card account numbers | Warranty/rebate documentation |
| Inventory of household goods | Legal documents |
|
Document |
Length of Time |
| Tax documents | Keep tax returns, as well as supporting documents like W-2 forms, receipts, and real estate closing statements for seven years. The IRS may audit you within three years if it suspects good-faith errors; six years if it believes you underreported your income by at least 25%; and unlimited time if you did not file a return or filed a fraudulent one. |
| Investment records | Keep as long as you own the securities, plus another seven years [Rich]. You’ll need them to prove capital gains and losses. |
| Bank statements | One month. You just need these long enough to check the accuracy of the transactions [Williams]. Unless the statement is your only record for a tax-related transaction, there’s no need to keep them longer. Plus, your bank will have them available online. |
| Retirement plan statements | Most, one year, for tax purposes [Rich]. Keep Roth IRA statements until you retire, to prove you already paid tax on your contributions [Rich]. |
| Credit card statements | Shred immediately after checking the accuracy of the transactions [Williams]. These documents are a prime source for identity theft. Unless the statement is your only record for a tax-related transaction, there’s no need to keep them longer. Plus, your issuer will have them available online. |
| Paychecks | One year, until you receive your W-2 [Rich]. |
| Bills | One year, for tax purposes [Rich]. |
| W-2 forms | Until you begin claiming Social Security. They’re the best estimate of your earnings and entitlements. |
This was incredibly helpful to me for getting my “paper life” into order. If you are interested in learning more or reading the original article where all this came from, please check it out here.
