If you have a Health Saving Account (HSA) and do not itemize medical deductions, then we recommend keeping a copy of unreimbursed medical expenses. The FTC recommends holding onto medical bills for one year before shredding, unless there is a unresolved dispute. Health insurance tends to generate a lot of paperwork, including Explanation of Benefits related to claims. This includes copies of insurance policies for health, life, long-term care, and property and casualty insurance. It’s important to keep a record of all insurance documents for policies and products while they are active.
DECLUTTER PAPERWORK DOWNLOAD
Typically, however, you can also download electronic copies of 1099s online for the fastest access. I typically recommend electing for paper delivery of tax documents for your convenience and to save paper and toner. Your bank and account custodians should have electronic copies of statements available to download even if you opt for paper delivery, and electronic statements can cut way down on paper clutter. As a result, you don’t need to keep account statements and transaction confirmations for more than a year unless they pertain to pre-2011 noncovered securities the custodian doesn’t have a record of.Īs a best practice, you may wish to keep year-end statements to track the value of your accounts and financial progress over the years. Congress created the concept of “covered” and “noncovered” securities beginning in 2011 when brokers were legally required to begin tracking and reporting cost basis. Prior to 2011, most brokers reported account cost basis as a courtesy, and investors were required to keep detailed records of their purchases and sales, sometimes for decades during which companies may have split, merged, or been spun-off. It’s likely that you receive account statements and trade confirmations either by paper, electronic delivery, or perhaps a combination of the two on a monthly or quarterly basis. Account Statements and Transaction Confirmations They may reach out by phone or even email. According to the Federal Trade Commission (FTC), for example, a thief may retrieve a medical bill from the garbage and pose as the medical office requesting additional payments. Seniors are frequent targets of identity theft, and while cybercrime has increased exponentially, thieves are not above old-fashioned “dumpster diving” to acquire paper records. When it comes to decluttering, financial and legal documents are among the most important paperwork to understand and differentiate what needs to be filed away, and what can be disposed of – securely. Even with the proliferation of electronic delivery, we are inundated with paper on a daily basis – junk mail, bills, receipts, statements, and notices. As a Wealth Advisor, around this time of year between tax filing and spring cleaning, I am often asked, “Do I need to keep this?” by cautious clients who are eager to declutter.
Every spring at RegentAtlantic, we host a Shred Day for clients and friends of the firm.
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