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Knowing which documents to keep—and how to store them—can help you protect your personal information Read, 3 minutes As your financial life gets more complicated, it’s difficult to know how long to keep documents and when it’s safe to get rid of them. Some things you’ll need to hold on to for your whole life and others for just a few months. You probably already know that important documents such as tax returns, bank statements and paycheck stubs need special attention, but for how long, and in what format? And what is the best way to safeguard all that personal data? Here’s a quick list of financial documents to save, based on the time they should be kept. KEEP FOREVERTax returns, major financial recordsYour tax returns are important documents to keep as part of your financial history. You’ll want to keep a permanent electronic or hard copy of each year’s tax return and any payments you make to the government. Additionally, it’s a good idea to hold on to records of major financial events, such as legal filings or inheritances. You can easily access your paperless statements and documents online and keep them safely stored there. Additional documents to keep foreverBirth and death certificatesSocial Security cardsMarriage licensesDivorce papersMilitary discharge documentsLife insurance policiesWills and living willsArticle continues belowPrivacy & security articlesKEEP 3 TO 7 YEARSSupporting tax documentationDepending on your filing circumstances, the IRS may be able to ask you for supporting documentation for three to seven years after you file a return. Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years. Even if your records are no longer needed for tax purposes, you may want to verify that the documents aren’t needed for other important financial institutions. Your insurance company or a creditor may have different record-keeping requirements than the IRS. KEEP 1 YEARRegular statements, pay stubsKeep either a digital or hard copy of your monthly bank and credit card statements for the last year. It’s a good idea to keep your digital copies stored online if you choose to go paperless. You should also hold on to pay stubs so that you can use them to verify the accuracy of your Form W-2 when tax season arrives. KEEP A MONTHUtility bills, deposits and withdrawal recordsIf you’re self-employed, you may need your utility, cable and cell phone bills for tax purposes. Otherwise, you can dispose of them as soon as you verify your payment was processed. You can also dispose of bank withdrawal and deposit slips after verifying them with your monthly statement.
3 ways to keep your documents secureIt’s important to make sure your sensitive information is safe and accessible.
More from Bank of AmericaHow long should you keep statement?KEEP 3 TO 7 YEARS
Knowing that, a good rule of thumb is to save any document that verifies information on your tax return—including Forms W-2 and 1099, bank and brokerage statements, tuition payments and charitable donation receipts—for three to seven years.
How many months bank statements do you need to keep?Most bank statements should be kept accessible in hard copy or electronic form for one year, after which they can be shredded. Anything tax-related such as proof of charitable donations should be kept for at least three years.
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