Good recordkeeping can cut your taxes and make your financial life easier
How long to keep records is a combination of judgment and state and federal statutes of limitations. Requirements for records kept electronically are the same as for paper records.
Generally, follow these recommended retention periods for various documents
| Record |
Retention Period |
|
Tax returns |
Permanent |
|
W-2s |
7 years
|
|
1099s |
7 years
|
|
Cancelled or substitute checks supporting tax deductions |
7 years
|
|
Bank deposit slips |
7 years |
|
Bank statements |
7 years
|
|
Charitable contribution documentation |
7 years
|
Credit card statements
|
3 Years
|
|
Receipts, diaries, logs pertaining to tax returns |
7 years |
|
Investment purchase and sales slips |
Ownership period + 7 years |
Dividend reinvestment records
|
Ownership period + 7 years
|
|
Year-end brokerage statements |
Ownership period + 7 years
|
|
Mutual fund annual statements |
Ownership period + 7 years
|
Investment property purchase documents
|
Ownership period + 7 years
|
|
Home purchase documents |
Ownership period + 7 years
|
|
Home improvement receipts and cancelled checks |
Ownership period + 7 years
|
|
Home repair receipts and cancelled checks |
Warranty period for item |
|
Retirement plan annual reports |
Permanent |
|
IRA annual reports |
Permanent
|
|
IRA nondeductible contributions (Form 8606) |
Permanent
|
|
Insurance policies |
Life of policy + 3 years
|
|
Auto records |
Ownership period + 3 years |
|
Divorce documents |
Permanent |
|
Loans and mortgages |
Term of loan + 7 years |
|
Estate planning documents |
Permanent |
|
|
|
