Call Us: 800-207-2259

Store Hours: 8:00am-5:00pm PST Mon-Fri
Need advice? Call Dye the Safe Guy.
800-207-2259
Menu
Search
Cart 0

How long do you need to keep documents for

Posted by Alexandra on

Many of our clients use their safes and vaults for keeping financial and personal documents. It’s essential to keep many of these documents for prolonged periods of time—and sometimes permanently for the government. While a lot of bank documents are now digitalized, there are still older documents that are paper only. If you are keeping your documents for safe keeping, make sure that you have a fire-safe safe. Check out the fire-proof safes available on our website.

 

Check out the information below for guidelines on how long you should keep important documents.

 

Financial records timeline

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

Seven years
  • The IRS has three years from your filing date to audit your return if it suspects good-faith errors.
  • The three-year deadline also applies if you discover a mistake in your return and decide to file an amended return to claim a refund.
  • The IRS has six years to challenge your return if it thinks you underreported your gross income by 25 percent or more.
  • There is no time limit if you failed to file your return or filed a fraudulent return.
IRA contribution records 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.
Retirement/savings plan statements From one year to permanently
  • Keep the quarterly statements from your 401(k) or other plans until you receive the annual summary; if everything matches up, then shred the quarterlies.
  • Keep the annual summaries until you retire or close the account.
Bank records From one year to permanently
  • Go through your checks each year and keep those related to your taxes, business expenses, home improvements and mortgage payments.
  • Shred those that have no long-term importance.
Brokerage statements 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.
Bills From one year to permanently
  • Go through your bills once a year.
  • In most cases, when the canceled check from a paid bill has been returned, you can shred the bill.
  • However, bills for big purchases — such as jewelry, rugs, appliances, antiques, cars, collectibles, furniture, computers, etc. — should be kept in an insurance file for proof of their value in the event of loss or damage.
Credit card receipts and statements From 45 days to seven years
  • Keep your original receipts until you get your monthly statement; shred the receipts if the two match up.
  • Keep the statements for seven years if tax-related expenses are documented.
Paycheck stubs One year
  • When you receive your annual W-2 form from your employer, make sure the information on your stubs matches.
  • If it does, shred the stubs.
  • If it doesn’t, demand a corrected form, known as a W-2c.
House/condominium records From six years to permanently
  • Keep all records documenting the purchase price and the cost of all permanent improvements — such as remodeling, additions and installations.
  • Keep records of expenses incurred in selling and buying the property, such as legal fees and your real estate agent’s commission, for six years after you sell your home.
  • Holding on to these records is important because any improvements you make on your house, as well as expenses in selling it, are added to the original purchase price or cost basis. This adds up to a greater profit (also known as capital gains) when you sell your house. Therefore, you lower your capital gains tax.

The post How long do you need to keep documents for appeared first on Gun Safes & Wall Safe Brands for Sale.


Share this post



← Older Post Newer Post →


Leave a comment

Please note, comments must be approved before they are published.

Top