I received a flyer with my ING investment statements that I found quite helpful and wanted to share that with you. It is simple and to the point. Here is a wrap up of what papers to keep and for how long...
Permanent Papers: (keep forever)
- Birth, marriage and death certificates
- Passports
- A copy of your will and health care directives
- Copies of beneficiary designations for retirement accounts
- All current insurance papers
Long-Term Papers:
- Federal and state income tax returns with the supporting documentation (minimum 3 years)
- Household papers including receipts, instructions and warranties for major appliances as well as records of capital improvements (keep as long as you own your home/appliance)
Short-Term papers:
- Monthly statements
- Investment papers confirming transactions
- Pay stubs (discard once you receive the year-end statement)
- Utility and telephone bills (shred as soon as they're paid)
- ATM receipts and deposit slips (destroy once they appear on your bank statement)
If you wanted to make files simple you could follow this outline for your file tabs! Keep the permanent papers in a fire proof box or safe.
As always, check with your accountant or tax advisor. For a complete guide to tax record keeping, see IRS Publication 552, Recordkeeping for Individuals at www.irs.gov.
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