Ideas To Start Organizing Your Paperwork
Records Keep these for as long as you own the car. Hold
on to sales-transaction data for six years after the car is sold
Policies Keep while active. After you receive the updated
policy, shred the old one.
and Contracts - Keep while active. Toss them as soon as they
Bills Keep while active. After you receive a cancelled
check or credit card statement, most bills and receipts can be shredded.
For insured purchases, keep paperwork as long as you own the item.
Stubs Keep for one year. Hold on to these until youve
checked the W-2 from your employer is correct.
Investment Records Keep for one year. After you confirm
that your annual statement accurately reflects your quarterlies,
shred the latter.
Card & Bank Statements Keep for seven years. These
can serve as proof if you file an insurance claim and as backup
for tax documentation.
and Documentation For Tax-Deductible Purchases Keep indefinitely.
The IRS ay go back at least three years if good-faith errors are
suspected and indefinitely if it believes you have underreported
your income by more than 25 percent.
Returns Keep indefinitely. These are useful references
for checking income or medical claims from a particular year.
Records Keep indefinitely. Save documents pertaining
to closings, deeds, assessments and home-improvement expenses.
IRA Contributions Keep indefinitely. Keep these in case
you need to prove that you already paid taxes on this income.
Investment Statements Keep indefinitely. Retain these
until you sell the securities. Keep the record of that transaction
Martha Stewart Living March 2008.