Throughout the course of the year you probably receive numerous financial statements, many of which are probably living in a large pile of papers. It is important to keep your financial records organized and to keep some records for certain periods of time. Here is a general list of how long you should hold onto your financial records and documents:
-Tax Returns- Keep these forever!
-Tax documents such as W2s, receipts, financial statements- Keep these for 6 years because that is the amount of time the IRS has to auit your returns
-Year-end investment statements from 401k, life insurance, and other investment accounts- Keep these for 6 years as well for tax purposes
-Pay stubs- Keep these until you receive your W2 from your employer, usually sometime in January
-Receipts for large purchases- Keep these for as long as you own the item for insurance and warranty reasons
-Receipts for home improvements- Keep for 6 years or until you sell the home, again for tax reasons