Whether you’re planning a move, doing some “spring cleaning” or simply looking to get more organized, chances are you have folders (or maybe boxes) of documents saved in case you need to refer back to them. It’s easy for papers to pile up quickly, taking up unnecessary space. If you’re like most people, you may not know when it’s okay to dispose of certain documents. We had the same questions, so we did a little digging and this is what we found.
It’s best to be on the safe side when it comes to certain documentation. You will want to keep the following documents indefinitely, potentially securing them in a safety deposit box or a fire safe: birth certificates, death certificates, marriage licenses, divorce decrees, adoption papers, social security cards, passports, trusts, wills and living wills, power of attorney and healthcare directives, and military discharge papers.
As far as other important paperwork, we created this chart for easy reference:
| Type of Document | How Long to Keep |
|---|---|
| Tax Records (W-2s, 1099s, brokerage statements, tuition payments, charitable receipts. This includes all deducted business-related expenses) | 7 Years |
| Bank Statements | 1 Year |
| Misc. Household Bills | 2 Years |
| Insurance Documents | The duration of the coverage only |
| Medical Bills | 1-3 Years |
| Utility Bills | Shred once paid |
| Credit Card Receipts | 18 months - 3 Years (7 Years if Business Expenses) |
| Healthcare Explanation of Benefits | 3-8 Years |
| 401K Plan and Retirement Documents | 7 Years - Indefinitely |
It’s best to consider multiple ways of disposal, shredding by hand, burning, composting, soaking papers, or using a high quality shredding service. Not only do these services typically do a better job of shredding, but they also mix your papers with those of others, making it less likely that your information will be detected.
If you have additional suggestions on how to store, dispose and secure important papers, let us know and we’ll update our blog. We’d love to hear from you!
