Shredding personal and financial documents is one of
the first and easiest ways consumers can protect their
information from being stolen by "dumpster-divers"
and burglars. They can't steal what they don't have
and you probably don't need to keep most of what you
have.
What
to Keep and for How Long |
|
45
Days |
One
Year |
Six
Years |
Seven
Years |
Permanently |
| Credit
card receipts and statements |
|
|
|
|
|
| Keep receipts until
your monthly statement arrives; if that's correct,
shred the receipts. Exceptions: Keep a receipt if
you're disputing a bill or to cover a warranty or
return period. Keep the statements for seven years
if they contain tax-related expenses. |
Pay
check stubs
|
|
|
|
|
|
| Make sure
the information on your paycheck stubs matches your
annual W-2 when you recieve it, then shred the stubs.
If your employer lists vacation/sick leave carryover
on your paycheck stub, keep the last one of the
year. |
Retirement/savings
plan statements
|
|
|
|
|
|
| Keep
the quarterly statement until you receive your
annual summary; if everything is correct on the
annual summary, shred the quarterlies. It's best
to hold on to annual statements until you retire
or close the account.
|
| Credit
union records
|
|
|
|
|
|
| At
the end of each year, go through your share draft
carbons or statements and only keep those related
to taxes, business expenses, and housing on mortgage
payments. |
| Bills |
|
|
|
|
|
| Keep
bills for major purchases -- cars, jewelry, furniture,
computers, and so on -- to show proof of their value
in the event of loss or damage. For other bills,
once you know payment has cleared your credit union
for a particular bill and the return/refund period
has expired, shred that bill. |
| House
records |
|
|
|
|
|
| Keep
purchase price information and the cost of permanent
improvements to your property, such as remodeling.
Also, if you buy or sell property, keep records
of legal fees and your real estate agent's commission
for six years after you sell your house. Keeping
these records, especially home improvement records,
is important and could help lower any capital gains
tax should you decide to sell. |
| Tax
records |
|
|
|
|
|
| The
IRS has three years to audit your return, and you
have three years to file an amended return to claim
a refund if you made a mistake. If you made the
mistake of underreporting your gross income by 25%
or more on a return, the IRS has six years to challenge
it. If you filed a fraudulent return or didn't file
one at all, the IRS can catch you on it at any time. |
| IRA
contributions |
|
|
|
|
|
| Keep
nondeductible contribution records permanently in
case you need to prove you paid tax on the money
when you want to withdraw it. |
|
45
Days |
One
Year |
Six
Years |
Seven
Years |
Permanently |
