What Documents Do I Need to Keep on File?
What Documents Do I Need to Keep on File?
Knowing what to keep—and for how long—protects you during IRS audits, supports insurance claims, facilitates estate settlement, and ensures your financial records are in order when life changes. This checklist guides you through the key document categories and recommended retention periods.
Tax Documents
- Tax returns and supporting documents: Keep at least three years of federal and state returns plus all supporting documentation (W-2s, 1099s, bank and investment statements). Depending on your state, you may need to retain for longer.
- If you may have underreported income by more than 25%: Keep six years of returns.
- Worthless securities or bad debt deductions: Keep records for seven years.
- W-2s: Keep all W-2s until you begin collecting Social Security.
- Gift tax returns (Form 709) and inheritance documents (Form 8971, 706): Keep permanently along with all supporting documentation.
Healthcare Documents
- Medicaid planning: If you may apply for Medicaid for long-term care, keep all financial statements and transaction records for the previous five years (five-year look-back provision).
- HSA: Keep all medical receipts from the date the HSA was opened—distributions can be taken at any time in the future for past eligible expenses.
- Medical expenses deducted on tax return: Keep for as long as you keep your tax returns (generally three years).
- Medicare: Keep Medicare Summary Notices for at least one year (or until bills are paid in full). Keep your annual “Notice of Creditable Coverage” if enrolled in an employer drug plan.
Legal Documents
- Identity documents: Social Security card, birth certificate, passport (U.S. citizens). Green card, I-94, and visa documents (foreign nationals).
- Estate plan: Keep copies of your will, trust(s), powers of attorney (general and healthcare), living will, and beneficiary designations. Store originals in a safe place and provide copies to executors, trustees, and agents.
- Marriage certificate: Keep on file for name changes, insurance benefits, and joint mortgage applications. Keep prenuptial agreements in a secure location.
- Divorce papers: Keep indefinitely.
- Military discharge papers: Keep for veterans’ benefits eligibility.
- Safe deposit box information: Keep instructions for locating and accessing.
Asset and Debt Documents
- Investment accounts: Keep most current statements on file. Keep year-end statements until after filing taxes. If you own investments purchased before 2012, keep original cost basis records separately.
- Retirement accounts: Keep contribution and withdrawal documentation (Form 5498), Roth conversion records, and Form 8606 for non-deductible contributions until the account is fully withdrawn.
- Business records (if self-employed): Federal EIN, formation documents, ownership agreements, licenses, payroll records, employment tax records, business asset records, and employee benefit plan documents.
- Debt documents: Keep loan documents until paid off, then keep proof of payoff.
- Real estate: Keep deeds, titles, settlement statements, bills of sale, and records of capital improvements until you sell. Keep multi-state property records to establish residency.
- Home office (self-employed): Keep receipts for all home/office expenses until three years after filing the return claiming the deduction.
Other Documents
- Education credentials: Keep copies of diplomas, certifications, and transcripts indefinitely.
- Insurance policies: Keep the most current version of all policies on file.
- Employment contracts: Keep any signed contracts including non-solicit or non-compete agreements.
Download the Document Retention Checklist
Get the complete checklist with yes/no prompts for every document category—tax, healthcare, legal, investment, retirement, business, and more. Use it to organize your records and ensure nothing important goes missing.
DOWNLOAD THE CHECKLIST