Most people practice retention by accident: the folder fills up, the drawer won't close, and something gets tossed. A deliberate version is simpler. For each kind of paper, you ask three questions. Does a rule say I have to keep it? Could I need it to prove something later? And once I'm done, how do I get rid of it safely?
There is no single answer in the US. Rules differ for personal records, business records and regulated or government records, and they can differ by agency and by state. This page describes the main federal sources and isn't legal or tax advice. For your own situation, ask the agency involved, your accountant or your lawyer.
What document retention is
At its core, retention has three parts: keep the record for a defined period, protect it while you hold it, and dispose of it when the period ends.
The period comes from different places depending on who you are. For personal and small-business tax records, it comes from the IRS. For organizations that use consumer reports, there are federal disposal duties. For federal agencies, records managers use a records schedule; the National Archives calls that the main tool for managing what happens to federal records and describes a life cycle of creation or receipt, maintenance and use, and disposition. Your household doesn't need a formal schedule, but a short personal version works the same way.
What it looks like
The table below pulls real figures from the sources linked at the bottom of the page. The IRS periods are for income tax returns and count from when you filed.
| Record type | Suggested retention | Source |
|---|---|---|
| Tax records supporting a normal return | 3 years | IRS |
| Records for a claim for credit or refund | 3 years from filing or 2 years from payment, whichever is later | IRS |
| Records if you underreport income by more than 25% of gross income | 6 years | IRS |
| Claim for loss from worthless securities or bad debt | 7 years | IRS |
| Employment tax records | At least 4 years after the tax is due or paid, whichever is later | IRS |
| Records if you don't file, or file a fraudulent return | Indefinitely | IRS |
| Bank statements, pay stubs, undisputed medical bills, credit card and utility bills | About a year | FTC |
| Vehicle title, home title or deed, loan papers, leases | While you own or hold them | FTC |
| Birth certificate, Social Security card, passport, marriage or divorce records, wills | Keep, and lock up | FTC |
Notice that the IRS and the FTC aren't competing. The IRS sets tax periods; the FTC offers consumer rules of thumb, and it says that where you can reach a document electronically you can consider shredding the paper copy.
What to keep and for how long
Start with the document's job. A pay stub exists to prove income for a while; a deed proves ownership for as long as you own the property. Property records follow a related rule: the IRS says to keep records about property until the period of limitations expires for the year you dispose of it.
Then check the exceptions, because retention has a long tail:
- Other purposes. The IRS notes that when records are no longer needed for tax purposes, check whether you need them longer for other reasons. Insurers or creditors may require you to keep them longer than the IRS does.
- Business use. If you use consumer reports for a business purpose, such as screening a tenant or employee, the FTC's Disposal Rule applies to how you dispose of them. Landlords and employers are on its list.
- Disputes. An open insurance claim or billing dispute is a reason to keep related papers past the usual date.
For a ready-made rundown by category, the what to keep and for how long guide goes through household papers, and the record retention calculator can help you pick a date. If your records are mostly tax-related, organizing tax documents year-round keeps them in one place. When the date arrives, see shredding.