Asset Planning, Inc Blog

The latest from the team.

Record Retention: Keep it or Toss it

After your taxes are complete it is always a good idea to go through your records and organize what you should keep and what you can get rid of.

How long to keep records is a combination of judgment and state and federal statutes of limitations. Since federal tax returns can generally be audited for up to three years after filing and up to six years if the IRS suspects underreported income, it’s wise to keep tax records at least seven years after a return is filed. Requirements for records kept electronically are the same as for paper records. Many records can easily be kept on-line now and downloaded and to your computer, external drive or cloud account.

Records Retention Guideline # 1: Some items should never be thrown out

This is because these items would be hard to replace and you may be asked to provide them later in life. I suggest storing these “permanent records” in an expanding file or wallet – preferably in a fire safe box:

  • Income tax returns: if the return is uncomplicated then you only need to keep it for 7 years.
  • Important correspondence.
  • Legal documents.
  • Vital records (birth/death/marriage/divorce/adoption etc.).
  • Retirement and pension records.
  • Year-end investment statements.
    • If the investments are transferred to another account make sure the cost basis has transferred over correctly.
    • IRA non-deductible contributions (Form 8606).
  • Will and Trust documents.
  • Records of paid mortgages and other loans.

Records Retention Guideline # 2: Everything Else

You should retain these records according to the following guidelines:

  • Home purchase documents – Ownership period + 7 years.
    • Property records/builder contracts/home improvement receipts (keep until property is sold – needed for taxes)
  • Car purchase and sale records (keep until car is sold + 3 years).
  • Insurance policies (keep for life of policy).
    • If policy is changed to another company make sure that you keep the files together.
  • Sales receipts (keep for life of warranty or life of the item on large purchases).
  • Warranties and instructions (keep for life of product).
  • Medical bills – keep for 3 years or longer if there are any reimbursement questions.
  • No need to keep monthly statements for credit cards, bank statements, utilities, etc. if you receive a year end recap or are able to go online and view up to 3 years of statements.
Continue reading
  180 Hits
180 Hits

Search Blogs Module

Wait a minute, while we are rendering the calendar
tax deadlines drive /usb April 11 Medicare plan September 30 2020. D premiums https ://seekingalpha investment statements Roth IRA COVID -19 virus Fox News story ice cream insurance policies TD Ameritrade toilet paper https :// business hours 70 1/2. Financial Planning Magazine Wells Fargo customers CERTIFIED FINANCIAL PLANNER exam February 14 IRA accounts EEChecklist-Kits.pdf stockpilingchecklist.pdf client portal September 9 email notifications breach house sitter Supplemental Security Income Brexit vote Medicare Part B cell phone carriers offer IRS deadline Labor Day pets clients show support contribution limit app Medicare Part B premiums 2017 IRA contributions asset Planning FSA earthquake app 2017 Equifax breach news coverage retirement plans tax filing deadlines notary services policy Joey Gonzales Medicare Wells Fargo employees disaster areas home emergency kit September 8 Kraig Mathias clone counterfeits rescue organizations tax returns chip-enabled EMV cards July weekend Retirement Contribution Limits pet credit monitoring service Medicare Advantage information life saver IRS Healthcare CA FTB fun atmosphere markets executive order 900 number spring cleaning Part B FEMA website hurricane Dorian April 18 2017. flash drive tax records cell phone SIM swap scam Facebook profile card reader jury duty Economic Security tax deadline CARES Act Social Security Administration account numbers 2018 IRA contributions market turmoil California Lions Friends Two-Step Verification portal Part D premiums . payments company phone companies birth certificates integral member trustee coronavirus National Ice Cream month parking spots identity theft 20 year anniversary insurance policy cell phones vacation illiegal robocallers relief efforts media accounts Erin Nelsen stimulus package phone October 1 2020. spam phone prescription eyeglasses spread Charles Schwab privacy notices information Facebook cell phone carriers paper records 401K borrowing money gap insurance self-help topics banking fees Ice Cream Social check lists years settlement options 23 andme stock pile records official certification checklists fun facts Coronavirus Aid vision screening water … cell phone service provider ID card health care services home security pet industry partner /owner Federal Trade Commission website CFP ® April 15 identity thieves blog post consumer spending Medicare question “ skimmer ”. estate planning direction Orange County Open Enrollment Puerto Rico trust cell phone provider donation items Victor Dergunov Flexible Spending Account documents Mobile Banking Security Tips July 4 Asset Planning emergency kits DNA test kits emergency kit Affordable Care Act health care costs bottom line money operations manager tax season privacy settings driver license text messages credit score interest rates phishing scams interest pet donation drive VOIP landline phones president Trump retirement accounts 2017 TD Ameritrade National LINC Conference emergency folder home emergency preparedness kits donation counts phishing sites ice cream event 4 pm -8pm web address pet supplies estate clients Amazon credit card fraud home break-ins July 6 increase January 10 scams Orange County Superior Court team members people medications Social Security home Independence Day car loans home mortgages earnings fallout Shred paperwork Auto insurance credit freeze non-prescripstion sunglasses July 3 rd holidays approach Kiplinger Letter memorial Day weekend opt-out Notary Public Expired medications credit card company paperwork clutter Treasury Department June 29 retirement planning Open House wells Fargo family members items padlock offering insurance student loans credit cards assets estate planning debt Legal robocalls summer retirement