You can’t take everything with you, but you should safely store or electronically scan and save certain essential documents. The following are suggestions about how long you should keep personal finance and investment records on file:
Financial records timeline |
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Type of record | Length of time to keep, and why: | |||
Taxes Returns Canceled checks/receipts (alimony, charitable contributions, mortgage interest and retirement plan contributions) Records for tax deductions taken |
Length of time to keep, and why: Seven years
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IRA contribution records |
Length of time to keep, and why: Permanently If you made a nondeductible contribution to an IRA, keep the records indefinitely to prove that you already paid tax on this money when the time comes to withdraw. |
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Retirement/savings plan statements |
Length of time to keep, and why: From one year to permanently
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Bank records |
Length of time to keep, and why: From one year to permanently
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Brokerage statements |
Length of time to keep, and why: Until you sell the securities You need the purchase or sales slips from your brokerage or mutual fund to prove whether you have capital gains or losses at tax time. |
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Bills |
Length of time to keep, and why: From one year to permanently
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Credit card receipts and statements |
Length of time to keep, and why: From 45 days to seven years
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Paycheck stubs |
Length of time to keep, and why: One year
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House/condominium records |
Length of time to keep, and why: From six years to permanently
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Source: Marquette National Bank, IRS and Consumer Credit Counseling Services of Greater Chicago
For tips on creating an organization system that works, see the main story, “How to organize your financial paperwork.”
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