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
  1401 Hits

Search Blogs Module

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