Simplify your banking
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CLEAN OUT YOUR FINANCIAL RECORDS

With another spring cleaning season mostly behind us, maybe you cleaned out a few closets or even made some extra cash through a garage sale. But did you take the opportunity to clean out your financial records? Before your paper shredder goes to work, check this list from Iowa Jump$tart on how long to keep financial records. Then consider opting for electronic statements to reduce your paper load.

Keep these records until you've reconciled your statement:
• Bank deposit slips
• Credit card receipts
• Monthly bills and credit card statements (keep statements and receipts you may need to prove tax deductions)

Keep these records for the calendar year:
• Bank statements
• Pay stubs (consider opting for direct deposit into your bank account)
• Investment/broker statements, including 401(k) plans

Keep these records for seven years:
• Tax returns and supporting documents
• Bank statements needed to prove a deduction on a tax return

Keep these records forever:
• Employer-defined benefit plan communications
• IRA contributions
• Brokerage statements (document gains/losses until sale)
• Life insurance policies (most recent copy)
• Loan documents (until paid and you have title)
• Home improvement records/receipts (keep seven years after you sell)
• Savings bonds (you can convert paper bonds to electronic)
• Safe deposit box inventory

For more information on Iowa Jump$tart and to access other financial education resources, visit iowajumpstart.org.

 

These tips are provided by the Iowa Bankers Association (IBA), representing banks and thrifts in the state. The IBA serves it members by providing legislative advocacy, training, regulatory compliance and other services designed to enhance the ability of banks to serve their communities. Learn more at www.iowabankers.com.

 

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