Spring Cleaning? Check Out These Document Retention Guidelines First!
Good records offer legal protection and can potentially prevent damages in a lawsuit, so it’s important records be available and easily accessible when needed. Storing documents longer than necessary, however, wastes precious space and resources. How long should your personal or business files be kept? It depends on the type of file in question, but as a general rule, documents should be kept as long as they serve a useful purpose and all legal and regulatory requirements are met.
Type of Record |
Recommended Period of Retention |
| Credit Card/Purchasing Documents | |
| Contracts (purchases and sales) | At least 6 years after the termination or disposal of item |
| Credit Card Receipts | Shred once reconciled with your monthly statement |
| Sales Receipts | At least 6 years |
|
Bank Documents |
|
| Bank Deposit/Withdrawal Slips | Shred once reconciled with your monthly statement |
| Bank and Credit Card Statements | At least 7 years |
| Cancelled Checks | At least 7 years |
|
Investment Documents |
|
| IRA Contribution Statements | Permanent |
| Pension/Profit Sharing Informational Returns | Permanent |
| Retirement/Savings Plan | Permanent |
|
Insurance Documents |
|
| Insurance Policies | At least 6 years after the termination of the policy |
| Settled Insurance Claims | At least 4 years after the termination of the policy |
|
Tax Documents |
|
| Income Tax Payment Checks | Permanent |
| Income Tax Returns and Worksheets | 7 years from filing date |
| Medical Bills (if tax related) | At least 7 years |
| Records for Tax Deductions | At least 7 years (e.g., charitable donations) |
|
Home/Residence and Personal Documents |
|
| Bills | Minimum 1 year* |
| Deeds, Mortgages, and Bills of Sales | Permanent |
| Legal Correspondence | Permanent |
| Medical Bills | At least 3 years |
| Contracts and Agreements | At least 6 years |
| Paycheck Stubs | Shred after reconciled with W-2 form and taxes are paid |
| Plan and Trust Agreement | Permanent |
| Real Estate Records of Improvement | Retain for length of home ownership |
| Utility Records | At least 3 years |
| Birth certificates, social security card, marriage licenses, divorce decrees, passports, education records & military service records | Permanent |
*Keep bills for large purchases for insurance purposes
Source: www.bbb.org/upstatesc
Protect Your Business
Document shredding is essential to protecting yourself and your business. The general public is more aware than ever before about the importance of protecting their personal information. They expect businesses to have processes in place for the management and secure disposal of their sensitive information. Sierra Shred destroys records in accordance with state and federal regulations regarding information destruction, including HIPAA, FACTA, GLBA. We also perform rigorous 7+ year background checks and drug testing by 3rd party vendors on all of our personnel. We can provide you and your clients with peace of mind regarding the secure disposal of confidential personal and business information.
