With 2010 tax season in full swing you may not know what to keep and what not to keep and for how long you should keep some documents. Here are just a few helpful tips on what you should be keeping.
Tax Returns 7 years of them
Keep tax returns and all supporting tax documents including w-2s, 1099’s, property tax info (if you own) bank statements, mortgage interest statements, cancelled checks, receipts, home purchase’s, home improvement information.
Wow that sound like a lot of stuff doesn’t it? My suggestion would be to get as much of that in electronic form as possible and put it on a disk. That way you don’t have hundreds of loose papers. Also putting it in disk form will make it easier to put in a fireproof safe for keeping.
Paycheck Stubs 1 year
Shred them after you have matched the info with your w-2. You should always double-check the numbers, after all people do make mistakes.
Mortgage Documents 10 years after the property has sold
Mortgage statements 7 years after the property has sold
Repair bills/contracts 10 years
Home 5 years
Life life of the policy + 3 years
Medical 5 years
IRA Contributions Permanently
401K Annual Summaries Keep until you close the account
Investment Statements 7 years after last account is sold
PERMANENTLY- NEVER SHRED
Marriage Certificates/divorce Decree
pension Plan Documents