What Financial Documents to Keep and For How Long
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Keeping documents is an important part of financial health. But what do you do need to keep and how long do you keep it?
Financial expert Suze Orman has created a list of when to dispose of documents. Here are a few recommendations.
Keep for 1 Month
- ATM Receipts – check with your account to make sure there are no inaccuracies before disposal
Keep for 1 Year
The following can be disposed of after one year unless needed for tax reasons, where they should be kept for three years:
- Bank Statements
- Credit Card Statements
- Cancelled Checks
- Utility Bills
Related: How to Stay Organized With Your Finances
Keep for 3 Years
The following should be kept for three years, especially if needed for tax preparation:
- Receipts
- Cancelled Checks
- Documents that support a deduction to your tax return
- Documents that support an income to your tax return
- Income Tax Return
- Medical Bills
- Cancelled Insurance Policies
Keep for 7 years
- Record of satisfied loans
Keep While Active
- Insurance Documents
- Stock Certificates
- Pension and Retirement Plan Records
- Contracts
- Stock Records
Related: How to Build Your Credit From Scratch
Keep Until Warranty Expires
- Sales Receipts
Keep Forever
- Birth Certificates
- Adoption Papers
- Marriage Licences
- Paid Mortgage Receipts
- Wills
- Death Certificates
“You can be audited by the IRS for no reason up to three years after you file a tax return,” Orman says. “If you omit 25% of your gross income that goes up to six years and if you don’t file a tax return at all, there is no statute of limitation.”
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