How Long Should You Keep Your Documents?
Good recordkeeping not only helps you stay organized—it can also reduce your tax burden and make your financial life much easier.
The length of time you should keep records depends on both judgment and the federal and state statutes of limitations. In general:
- The IRS can audit federal tax returns for up to three years after filing.
- If the IRS suspects underreported income, that window extends to six years.
- Because of this, it’s wise to keep tax-related records for at least seven years after filing.
The rules for electronically stored records are the same as for paper documents. Below are recommended retention periods for common documents:
📂 Record Retention Guidelines
| Document Type | How Long to Keep |
|---|---|
| Tax returns (uncomplicated) | 7 years |
| Tax returns (all others) | Permanent |
| W-2s | 7 years |
| 1099s | 7 years |
| Bank deposit slips | 7 years |
| Bank statements | 7 years |
| Cancelled/substitute checks (supporting tax docs) | 7 years |
| Credit card statements | 7 years |
| Dividend reinvestment records | Ownership period + 7 years |
| Estate planning documents | 7 years |
| Home repair receipts | Warranty period of item |
| Insurance policies | Life of policy + 3 years |
| Investment purchase & sales documents | Ownership period + 7 years |
| IRA annual reports | Permanent |
| IRA nondeductible contribution forms (Form 8606) | Permanent |
| Loans | Term of loan + 7 years |
| Mutual fund annual statements | Ownership period + 7 years |
| Receipts, diaries, logs (supporting tax return) | 7 years |
| Retirement plan annual reports | Permanent |
| Year-end brokerage statements | Ownership period + 7 years |
Final Tip
When in doubt, it’s better to keep documents longer rather than risk discarding them too soon. Good recordkeeping today saves stress—and potentially money—down the road.
