How long to keep documents before shredding

How long to keep documents depends on their purpose. Routine bills and statements are generally kept for about one year, while records such as birth certificates and wills may need to be kept permanently. Paper copies may be shredded sooner when a readable digital copy is securely stored and backed up. Use this general guide to decide what to keep, digitize or shred.

Document retention at a glance

Use this quick guide as a starting point to help you choose how long to keep documents. Your retention needs may vary based on your taxes, property, insurance, employment or personal circumstances.

These are general guidelines. Before discarding a document, check whether an insurer, creditor, government agency, employer or qualified professional recommends keeping it longer.

How long to keep monthly records

The Federal Trade Commission (FTC) generally recommends keeping many routine monthly records for one year.

Common monthly records include:

• Utility and credit card bills: Generally keep for one year, unless they support a tax item, dispute or major purchase.
• Bank statements: Generally keep for one year, unless they are needed for taxes, a loan, a dispute or proof of payment.
• Routine receipts: Keep until the transaction is verified. Retain them longer for warranties, returns, taxes, insurance claims or major purchases.
• Pay stubs: Keep until they have been compared with your W-2 or annual earnings record, or longer when needed for a loan, benefits application or dispute.
• Medical bills and insurance statements: Keep until the bill is paid and the claim is resolved, generally for about one year when there is no dispute.

Your needs may vary depending on online access, tax considerations or other recordkeeping requirements.

How long to keep insurance documents

Consider keeping current insurance policies, declarations pages, endorsements and proof of insurance while the policy remains active. When you receive updated documents, compare them with the previous versions before securely disposing of outdated copies.

Documents to consider keeping while your policy is active may include:

• Current policy documents
• Declarations pages
• Proof of insurance
• Policy endorsements
• Claim records
• Repair estimates and receipts related to claims

You may choose to keep records connected to an unresolved claim, dispute or legal matter until the issue is resolved and you’ve confirmed that the documents are no longer needed. Retention requirements can depend on the situation, so consider checking with your insurer or a qualified professional before discarding them.

How long to keep tax records

The length of time you should keep tax documents depends on the income, expense or event they support. In general, the Internal Revenue Service (IRS) says records supporting income, deductions or credits should be kept until the period of limitations for the related return expires.

Here’s a general overview:

Consider keeping copies of filed tax returns because they may help with future returns or amended filings. State tax agencies may have different recordkeeping periods. Check the rules for your state before discarding state tax documents.

Electronic tax records generally should contain the same information as paper records and be kept for the applicable retention period. Store sensitive digital files securely and remove them from computers, phones and other devices before trading them in, recycling them or disposing of them to help reduce the risk of identity theft and fraud.

How long to keep personal documents

Some personal, estate and government-issued documents can be difficult to replace. Consider keeping originals permanently in a secure, fire-resistant safe.

These documents may include:

• Birth and death certificates
• Marriage licenses
• Divorce and custody decrees
• Adoption papers
• Wills and trusts
• Powers of attorney
• Social Security cards
• Citizenship and immigration papers
• Military service records
• Valid passports

Some agencies or institutions may require an original or certified copy of a document. Before shredding an original, confirm the requirements that apply to that document.

How long to keep property and investment records

Consider keeping property and investment records for as long as you own the asset. Some records should also be retained after a sale or transfer, particularly when they may affect a tax return.

Records may include:

• Real estate: deeds, mortgage documents, closing papers and home improvement receipts
• Vehicles: titles and purchase or lease documents
• Household items: receipts, appraisals, warranties and operating instructions for major purchases
• Investments: purchase and sale confirmations, cost-basis information and account statements
• Retirement accounts: contribution, distribution and beneficiary records

The IRS recommends keeping property records until the period of limitations expires for the tax year in which the property is disposed of. These documents may be needed to establish the property’s basis and calculate a gain or loss.

Consider going paperless for easier document management

While knowing what to keep is important, deciding how to keep it matters too. For many routine records, paperless delivery may simplify storage and reduce paper clutter.

Depending on the company, you may be able to receive things like bills, financial statements, invoices and insurance documents through email, an app or an online account.

Before choosing paperless delivery, decide which documents you’re comfortable storing digitally and which ones you prefer to keep in paper form. Some original personal, government-issued or legal documents may still need to be retained.

Benefits of digital documents

Paperless delivery may offer several benefits, including:

• Convenient access: Eligible documents may be available through an online account when you have internet access.
• Faster delivery: Electronic notifications may arrive sooner than printed mail.
• Simpler organization: Searchable folders and clear filenames can make documents easier to find.
• Reduced paper use: Digital delivery can reduce the amount of paper used for routine communications.

Store digital documents securely

Digital records may reduce paper clutter, but they still contain information that needs protection. Consider these practices:

• Use strong, unique passwords.
• Turn on multifactor authentication when available.
• Store important files in secure folders.
• Keep a backup in a separate secure location.
• Review files periodically and delete records you no longer need.
• Sign out of shared or public devices.
• Remove personal files before selling, trading in or recycling a device.

Online access may not last indefinitely. Download records you need to keep before they are removed from an account and maintain a secure backup rather than relying only on email or a company’s website.

Shred documents before you toss them

When you no longer need a paper document containing sensitive information, consider shredding it before placing it in the trash or recycling bin.

Documents that may need to be shredded include those containing:

• Social Security numbers
• Bank or credit card account numbers
• Insurance policy or claim information
• Medical or prescription information
• Signatures
• Dates of birth
• Driver’s license or identification numbers
• Employment or payroll information
• Preapproved credit or insurance offers
• Expired identification cards

Create a simple document retention routine

Consider reviewing documents regularly and sorting them into three groups: keep, digitize and shred.

Before discarding a sensitive record, confirm that you no longer need the original and that any digital copy is readable, securely stored and backed up.

Staying on top of document retention doesn’t have to be complicated. A simple system, along with paperless delivery for many routine documents, may help reduce clutter and make important records easier to find.

State Farm customers can review available paperless options and communication preferences through their online account or the State Farm app. Some documents may still be sent by mail when required.