The rules for record retention vary depending on whom you consult. If you have the space, it’s better to err on the side of caution.
document TYPE |
keep |
details |
|---|---|---|
Auto Records |
While Active |
Keep these for as long as you own the vehicle. Hold on to sales-transaction data for six years after the car is sold or traded. |
Insurance Policies |
While Active |
After you receive the updated policy, shred the old one. |
Warranties and Contracts |
While Active |
Toss them as soon as they expire. |
House-Related Records |
While Active |
Save documents pertaining to closings, deeds, assessments, and home-improvement expenses. |
Paid Bills |
One Year |
Keep canceled checks and credit card statements for utility and other bills for one year (or indefinitely if they pertain to tax deductions for a home office). For insured purchases, keep paperwork as long as you own the item. |
Paycheck Stubs |
One Year |
Hold on to these until you’ve checked that the W-2 from your employer is correct. |
Credit Card and Bank Statements |
Seven Years |
These can serve as proof if you file an insurance claim and as backup for tax documentation. |
Tax Returns |
Seven Years |
These are useful references for checking income or medical claims from a particular year. |
Most IRA Contributions |
Indefinitely |
Keep these in case you need to prove that you already paid taxes on this income. |
Personal Records |
Indefinitely |
Birth certificates, marriage and divorce papers, Social Security cards, passports, and education records are needed for life. |
Receipts and Documentation for Tax-Deduction Purchases |
Indefinitely |
The Internal Revenue Service can go back at least three years if good-faith errors are suspected, and indefinitely if it believes you have underreported your income by more than 25 percent. |
Annual Investment Statements |
Indefinitely |
Retain these until you sell the securities. Keep the record of that transaction indefinitely. |