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
  874 Hits

Search Blogs Module

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