How long should I save these things? (Retention/Financial stuff)?
* W2s? (I'm guessing until I complete my tax return?)
* Pay Check stubs?
* Billing Statements? (I'm guessing 3 months?)
*Bank Statements?*
Answers:
My understanding is that the IRS can initiate an audit at any time up to 3 years after the due date (including extensions) of a return (or indefinitely if they suspect fraud). So, for example, they can audit your 2006 return that you just filed any time up until 2010. So you should save copies of your tax returns and all supporting documents (W2s, 1099s, 1098s, receipts for deductions you claimed, etc.) for AT LEAST 3 years after the tax return is due, but just to be safe, I personally save mine for at least 7 years. (I've heard people quote 7 years as the limit for audits, but I don't know where that comes from. Here's a link to what the IRS says about saving records: http://www.irs.gov/instructions/i1040gi/... )
I don't think there's any particular requirement for saving pay check stubs and billing and bank statements beyond the time it takes to be sure they are correct and your pay check was deposited correctly, etc. I generally save them for at least a couple years because sometimes I want to go back and check on something to see when I bought it or how much I paid for it.
You should save records of any purchases of stocks, mutual funds, or other investments until 3+ years after you sell them and report the capital gains on your tax return.
The usual time is 7 years. That is the time that the IRS can go back and audit you. After that, you really don't need any bills or anything. It just takes up space then
Tax Returns (including all supporting material) - Seven years. I've heard it's a good idea to save the copies of the returns themselves (not the supporting material) forever just in case you have to prove you filed every year.
W2s - Keep them for seven years since they support your tax returns.
Pay check stubs - Shred them when you get your W2 for the year and have verified that your W2 is correct.
Billing statements - I shred them when I get the following month's bill showing the previous bill was paid in full. Some people recommend keeping them for a year.
Bank statements - You'll need at least three month's worth if you apply for a mortgage. I keep my December statements each year just in case I want to track my savings history.
Be sure you keep all records of IRA deposits forever.
Tax returns: Definitely 4 years
W2S: I'd recommend keeping them with your tax papers
Pay Check Stubs: Last four is usually recommended. Although if you are an extremely organized and patient person, you might want to keep it until you receive your W2S
Billing statements: My credit company says 6 months max for most bills
Bank statements: I usually keep the last 4.
*Signing up for online billing / banking can save you a lot of hassle. This way you can access old records easily.
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