 TITLE: What Is the Best Way to Store Your Financial Records? CONTENT: What Financial Records Should You Keep?\n---------------------------------------\nWhen it comes to tax returns, the IRS advises that you keep them and the documents used to prepare them for at least three years. Even if you're not worried about an audit, there could be errors on your returns or other issues that may require filing an amendment or taking other action down the road. You may use many different documents when preparing your returns. These usually include the following:\n*   Canceled checks, credit card statements, receipts and any other proof of payments made to validate any claims or deductions on your return\n*   Forms proving your income, such as W-2 and 1099 forms\n*   Forms related to property, particularly if you've bought or sold a home, or own investment properties\n*   Financial records related to any investments you may have, such as stock transactions or account statements, college savings statements (529 plans and the like), and retirement account statements, such as traditional and Roth IRA statements\nThe IRS has up to six years to initiate an audit if you haven't reported at least 25% of your income. As a rule of thumb, plan to keep records anywhere between three and seven years. It's better to err on the side of holding on to these forms for a longer rather than shorter time period.\nYou should also have documents for your bank and investment accounts on hand, as well as a list of and supporting documents for your loans, mortgages and other debt. You will also want hard copies of your insurance policies, as well as any wills, trusts and other important legal documents.\nFinally, your identity documents are also an important part of your financial records. These include your Social Security card and your passport, among other items. END