We're all so overwhelmed with papers that it would be nice to simply shred it all and start fresh. But if you get that urge, stop yourself — certain documents warrant saving. Check this list of how long to keep important documents, and then shred the rest.
Time — Varies
Difficulty — Easy
Expertise — None
Frequency — Once a year
Where — All US
Shred after one year
- Paycheck stubs
- Monthly retirement plan statements
- Bills and credit card statements
Shred after 7 years
- General documentation for tax returns, including canceled checks, receipts, charitable deductions and documentation related to self-employment income
- Documents for the sale of a house or condominium, including records of major home improvement projects
- Confirmation of a loan repayment
- Records pertaining to sold investments
Keep as long as you own the property or item
- Property deeds
- Papers associated with a real estate closing
- Car title or lease agreement
- Receipts for major purchases
Never shred
- Life event records, such as birth, marriage, naturalization and death certificates, military records, divorce papers, diplomas, transcripts and social security cards
- Family medical records
- Wills and insurance policies
- Retirement-related documents, such as records of IRA contributions and annual retirement or savings plan statements
- Tax returns and some crucial supporting documentation (W2 forms, the cost basis for investments and records for deductions) because there's no time limit on audits if the IRS suspects fraud.
Tips and Warnings
To protect important documents, keep them in a fireproof safe, and make electronic copies of the most important ones, like birth and marriage certificates. Save them on a flash drive and keep it with other emergency supplies in case of disaster.
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