Questions about how long to keep financial records come up often, especially when clients are downsizing, preparing to sell a home, helping aging parents organize their affairs, or simply trying to declutter.

We first wrote about personal record retention in 2020 and revisited the topic in 2021 and 2024. We keep revisiting it because guidelines change, more of our financial lives have moved online, and the question remains just as relevant today: What should you keep, what can you shred, and how long should you keep important financial records?

The good news is that you probably don’t need to keep everything.

We recommend reviewing your financial files at least once a year. Clearing out records you no longer need can help protect sensitive information, make important documents easier to find and, perhaps just as importantly, prevent your family from someday having to sort through years—or even decades—of unnecessary financial paperwork.

Before you start, keep two basic rules in mind.

Rule #1: Store Important Documents Safely

Keep important records secure but still accessible when you need them.

Keep original documents such as birth certificates, marriage certificates, and other vital records in a secure location, such as a fire-resistant home safe. A safe deposit box may also work for certain documents, although access is generally limited to banking hours. Also consider who would be able to access the box if you become incapacitated or die, as access may not be as simple as you expect.

For financial records that don’t require an original, secure digital storage can eliminate a lot of paper. Protect those files with strong passwords and multi-factor authentication, and make sure someone you trust knows how to access critical information if necessary.

Rule #2: Shred Sensitive Documents You No Longer Need

We’re all for recycling. Just not when the paper contains your Social Security number or bank account information.

Once you determine that a document no longer needs to be kept, securely destroy anything containing personally identifiable or financial information. A cross-cut shredder, professional shredding service, or community shred day can make the job easier.

EKS clients can also bring sensitive documents to our office and place them in our locked shred box. Call us if we can help.

How Long Should You Keep Tax Records?

Tax records are probably the documents we’re asked about most often. And it’s understandable: No one wants to throw away something they might need later, but no one wants to keep decades of unnecessary paperwork either.

For most federal income tax records, three years is the general rule.

Keep the documents that support the income, deductions, and credits reported on your return for at least that long. There are exceptions. The period can extend to six years in certain cases involving substantially underreported income and seven years for claims involving worthless securities or bad debt deductions. There is no limitation period for a fraudulent return or when no return is filed.

So, what should you do if you’re simply not sure? Keeping tax records for seven years is a reasonable, conservative rule of thumb. Because everyone’s circumstances are different, check with your financial planner or tax professional before destroying anything you’re uncertain about.

As for the tax returns themselves, keep copies for at least as long as the supporting records. You may choose to keep the returns longer, since they provide a useful history of your financial and tax life.

Which Documents Should You Keep Permanently?

Some records belong in your permanent files, including:

• Birth and adoption records
• Social Security cards
• Marriage certificates and divorce decrees
• Military records
• Citizenship and residency documents
• Vital medical records
• Wills and trusts
• Powers of attorney
• Advance medical directives
• Other important estate planning documents

When you update estate planning documents, make sure it’s clear which version is current, and ask your attorney before destroying prior original documents.

Most importantly, make sure the appropriate people know where these records are and how to access them if necessary.

What Records Should You Keep While You Own an Asset?

Hang on to records that establish ownership, cost basis, or other important information for as long as they’re relevant.

That may include:

• Home purchase records and documentation of capital improvements
• Property deeds and titles
• Vehicle titles
• Mortgage and loan documents
• Investment records needed to establish cost basis
• Receipts and warranties for major purchases

Property records can be particularly important. Keep records related to your home and other property until after the applicable tax period following its sale or disposition has passed.

In other words, that receipt from the kitchen renovation 15 years ago may be worth keeping after all.

How Long Should You Keep Bank and Credit Card Statements?

Online banking has greatly reduced the need to keep years of paper statements.

Once you’ve reviewed your bank and credit card statements, you generally don’t need to keep paper copies unless they document something needed for tax, legal, insurance, or other financial purposes.

The same goes for receipts. Keep them until you’ve confirmed the charge and the return or warranty period has passed. If a receipt supports a tax deduction, establishes the cost of an asset, or may be needed for an insurance claim, keep it with the appropriate records.

What About Medical and Insurance Records?

Keep current insurance policies while they’re in effect and hold on to documents related to any outstanding claims.

You can generally discard medical bills and health insurance statements once the bill is paid and any insurance or reimbursement issues are resolved, unless you need them for tax purposes or another reason.

Vital medical records, however, may be worth keeping permanently.

What About Digital Financial Records?

Going paperless doesn’t eliminate the need for good recordkeeping. It just changes where the clutter lives.

Periodically review financial documents stored on your computer, phone, or cloud storage. Delete what you no longer need, organize what you do, and protect sensitive files with strong passwords and multi-factor authentication.

Most importantly, make sure your system makes sense to someone other than you.

Don’t Leave All the Decisions to Your Kids

There’s another good reason to clean out your financial files: Someday, someone else may have to go through them.

Boxes filled with decades-old statements, canceled checks, expired insurance policies and outdated records can leave your children or other family members trying to figure out what’s important and what can safely be discarded.

The same principle applies to financial records as it does to everything else we accumulate over a lifetime: At some point, someone will have to decide what to do with it.

Reviewing your records now is another way to make things easier for your family later.

Keep what matters. Securely dispose of what doesn’t. Create a system that makes your important financial and estate planning information easy to find when it’s needed.

Not sure what you should keep? Your EKS advisor can help you sort through what belongs in your long-term financial files and what may no longer be necessary.

Originally published February 2024; updated August 2026.