This question pops up from time to time, especially this time of year. What to do with all those saved documents? To help answer this question, here are some guidelines.
- Mortgage Information: For as long as you own the property, plus 4 years for tax purposes.
- Receipts for Purchases: 1 month, except big-ticket items requiring proof-of-purchase for insurance.
- Utility Bills: 1 month, unless you deduct for home office expenses as these are filed with tax records.
- Tax Records: Forever. Supporting documents: at least 4 years
- Bank Statements: 1 month or until checks clear. Keep documentation supporting tax deductions.
- Paycheck Stubs or Direct-Deposit Statements: 1 year.
- Credit Card Statements: 1-2 months or until reconciled.
- Records for Home Improvements, Sale or Purchase of Property: 4 years after the sale of the home or property.
- Medical Records: 4 or more years.
- Insurance Policies & Bills: Keep current policies and bills, discard cancelled policies.
- Investment Records: Keep initial purchase and year-end reports indefinitely.
