You’ve probably heard it before. Good financial records are very important…..especially at tax time. But you just can’t keep every snippet of paper forever, or you’ll need to put an addition onto your house!
It’s time for a review. Let’s do some maintenance and get rid of the paperwork that’s cluttering your life.
Before we talk about what you can throw out, let’s look at papers you should stash away in your permanent file.
Keep the following documents forever:
- Records that relate to your home (mortgage, deeds, capital improvements. etc.)
- Documents showing non-deductible and deductible IRA contributions.
- Tax returns and checks used to pay taxes or to substantiate deductions.Once those papers are safely filed and tucked away, grab your trash bag because here we go!
TYPE OF RECORD THROW OUT AFTER
Accident reports/claims 7 years
Back-up tax paperwork 10 years
Bank reconciliations 1 year rolling
Bank statements 3 years
Brokerage statements Year end onlyContracts,notes and leases (expired) 7 years
Credit card statements 1 year rolling
Insurance policies (expired) 3 years
Mutual fund statements (after sold) 3 years
Paycheck stubs: normal 1 year
Now maybe your home will be big enough for you, your family andyour financial records!
Please contact us for a financial consultation by calling(954) 682-0200 or by email info@jksbusinesssolutions.com