“How long do I keep paper?” is one of the questions I get asked the most. Many people are afraid to throw papers out. To help, I compiled this list from several sources including the IRS, for which there is a direct link to their recordkeeping document at the bottom.

These recommendations are for residential recordkeeping. Business recordkeeping varies, please check with your accountant.

Save for 1 month

• Credit-card receipts
• Sales receipts for minor purchases
• Withdrawal and deposit slips. (Shred after checking against your monthly bank statement.)

Save for 1 year

• Paycheck stubs (Shred after your W-2 arrives.)
• Monthly bank, credit-card, brokerage, mutual-fund, and retirement-account statements
• Utility bills

Save for 7 years

• W-2s, 1099s, and the other “guts” of your tax returns
• Year-end credit-card statements, brokerage and mutual-fund summaries
• Cancelled checks relating to tax records

Save indefinitely

• Tax returns (after 7 years you can shred the guts – see above)
• Receipts for major purchases (or for as long as you own the item)
• Real estate and residence records
• Wills and trusts

Save in a safe deposit box or fire-proof safe

(Any document that would be difficult or impossible to replace)

• Birth and death certificates
• Adoption papers
• Marriage licenses
• Insurance policies
• Original Social Security cards
• Passports
• Property deeds
• Car titles
• Military service records
• Loan pay-off documents
• Business incorporation certificates
• Jewelry, art and furniture appraisals
• Valuable jewelry or coins
• Inventory of everything in your home (list or photo/video of items)

For more information, go to IRS.gov – Topic 305 – Recordkeeping

http://www.irs.gov/taxtopics/tc305.html