Old Papers, Bills, Etc how long do I hold on to these things?

[InsomniacInkRoss]

Doing some hardcore cleaning and shredding of things in the home office

 

Why do I keep all these bills and statements? Do I need to?

 

I seem to remember being told to, but for how long, and why?

[trwi7]

Keep all tax related things for seven years. Unimportant bank records for a year; the rest permanently. Shred bills once you get a cancelled check. Keep quarterly retirement savings statements until you get an annual statement. If they match up, shred the quarterly statements and keep the annual statements permanently.

 

Hey, that World of Business class I took in high school did come in handy after all. http://forum.brewerfan.net/images/smilies/smile.gif

[InsomniacInkRoss]

What bank records are important?

 

what about pay stubs? I have like, everyone, ever, 12 years worth

 

what is this "retirement savings" you speak of?

 

yeah, i am disorganized

[trwi7]

Important bank records are things related to taxes, mortgage payments, business expenses etc.

 

Keep pay stubs until you get your W-2 form. Make sure the information on the stubs matches your W-2 form, if it does, you can shred them.

 

Retirement savings like a 401(k).

[sbrylski]

Thread bookmarked.

 

Once I get a job, this will come in handy.

[bullox]

Retirement savings like a 401(k).

Whiffed on that one.

[AdvantageSchneider]

You don't need to keep your tax records for 7 years. The statute of limitations for tax records runs out 3 years after you file your tax return as long as their is no tax fraud or severe underpayment involved. So if you have a very simple tax return, a W-2, some interest and capital gains, you can shred the tax documents 3 years after you file the return.

 

If you have a more complicated return involving lots of documentations of business expenses and other deducttions you might want to hold onto them for 6 years after you file the return.

 

If you want to read up on it yourself, go here:

 

http://www.irs.gov/busine...ticle/0,,id=98513,00.html

[hawing]

A few years ago, my credit union had a little chart in one of its newsletters saying how long to keep various types of financial formage.

 

Their online archive of newsletters only goes back a year, but I know I have the clipping at home. I'll try to remember to fish it out tonight, or soon.

[temke]

i keep nearly nothing these days since all of my bills are archived online. i dont even get a paper paystub anymore, so that problem is solved.

 

mortgage even keeps a couple years of 1098 and 1099 information.

 

the only thing i keep are medical bills since they dont all come from the same place.

[Bikeage77]

as temke said, you pretty much don't need to keep anything anymore. maybe tax stuff, but that's about it. Bank statements, payment statements, credit card statements, etc, are all online.

 

I just wish that KFC and the local advertising newspaper and other assorted junk mail were available online so they'd stop wasting so much paper. that's for a different thread though.

[hawing]

OK, here are the contents of the clipping I took from a credit union newsletter in 2004. Don't snicker at the ones that don't currently apply to you!

 

What to Keep and for How Long

 

Credit and debit card receipts : Keep receipts until your monthly statement arrives, and toss them if everything matches.

Exception: Keep receipts to cover a warranty or return period.

 

Paycheck stubs: Match the information on your stubs to your W-2 tax statement. If they agree, toss all but your last stub; save this one to verify that carried-over benefits appear on your first stub in the new year.

 

Retirement plan statements: Keep quarterly statements to check against your annual summary. If everything is correct, discard the quarterly statements.

Check carbons and statements: Annually go through check carbons and statements and toss all but the ones related to taxes, business expenses and housing payments.

 

Tax records: Save statements or records that contain tax-related information for seven years. If you file a fraudulent return or didn't file one at all, the IRS can catch you at any time.

 

Household records: Save purchase price information and the cost of improvements to your property. Also keep records of legal fees and your real estate agent's commission for six years after you sell your home. Keeping these records could help lower capital gains tax when you sell.

 

Receipts: Keep receipts for major purchases indefinitely to prove their value if lost or damaged.

 

IRA contributions: Keep nondeductible contribution records in case you need to prove you paid tax on the money when you withdraw it.

 

The chart that accompanied the text above showed the following:

 

Card receipts (credit / debit) : 45 days

Pay stubs, statements : 1 year

Household records: 6 years

Tax records: 7 years

Major receipts, IRA contributions: permanently