How long to keep old investing records

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Mrs.Feeley
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How long to keep old investing records

Post by Mrs.Feeley »

About 7-8 years ago we transferred all of our investments to Vanguard and Fidelity and consolidated everything into a 3-Fund portfolio for simplicity's sake. We sold off individual stocks and other mutual funds, closed brokerage accounts and cut ties with other mutual fund companies and a financial advisor.

Tonight I was organizing some files and realized we have nearly an entire file cabinet jammed with old statements from brokerages and mutual fund companies from the years prior to the leap to the 3-Fund portfolio. The paper heap chronicles nearly 30 years of investing. Do we have to hold onto all this? Or can I shred it?

I do have copies of all of our tax returns through the years, and plan to hold onto those. Are the tax returns enough to substantiate the non-taxable basis in a few old trad-IRAs or will we need the statements from the various mutual funds in which we invested?

Please don't suggest I scan all the old statements because it would take me at least a month. I'd rather lug around this file cabinet until I die if need be. :wink:
barnaclebob
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Re: How long to keep old investing records

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I would save anything that has the basis on it for uncovered shares that you currently own. Other than that, no need to keep anything past any tax lookback periods.
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retiredjg
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Re: How long to keep old investing records

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If you are younger, you need documentation of how every penny got into Roth IRA. Some of that might be in those records. If you are over 59.5 and have had Roth IRA more than 5 years, that is no longer necessary.

Are the tax returns enough to substantiate the non-taxable basis in a few old trad-IRAs or will we need the statements from the various mutual funds in which we invested?

If you mean non-deductible contributions, all you need from the old returns is your last Form 8606. However, I tend to keep old returns anyway.
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Mrs.Feeley
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Re: How long to keep old investing records

Post by Mrs.Feeley »

barnaclebob wrote:I would save anything that has the basis on it for uncovered shares that you currently own. Other than that, no need to keep anything past any tax lookback periods.
Thanks, Bob! Should one retain the statements if the uncovered shares are in an IRA?
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Mrs.Feeley
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Re: How long to keep old investing records

Post by Mrs.Feeley »

retiredjg wrote:If you are younger, you need documentation of how every penny got into Roth IRA. Some of that might be in those records. If you are over 59.5 and have had Roth IRA more than 5 years, that is no longer necessary.
Are the tax returns enough to substantiate the non-taxable basis in a few old trad-IRAs or will we need the statements from the various mutual funds in which we invested?

If you mean non-deductible contributions, all you need from the old returns is your last Form 8606. However, I tend to keep old returns anyway.

We're a few years under age 59 so I guess I'll hold onto all the statements just in case.

The last Form 8606 we filed was years ago. Along with our old tax returns I do keep a file folder with copies of the old Form 8606s and any related info on non-deductible contributions.

I guess I'll remain a packrat and hold onto the file cabinet. Years ago, prior to Roth IRAs, Suze Orman advised skipping investing in trad-IRAs because of all the paperwork one must retain through the years. That seemed a bit extreme, but now I understand.

Thanks for your advise, RetiredJG! :)
barnaclebob
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Re: How long to keep old investing records

Post by barnaclebob »

Mrs.Feeley wrote:
barnaclebob wrote:I would save anything that has the basis on it for uncovered shares that you currently own. Other than that, no need to keep anything past any tax lookback periods.
Thanks, Bob! Should one retain the statements if the uncovered shares are in an IRA?
As long as its all pretax it shouldn't matter.

Someone made a good point about tracking how after tax money gets into retirement accounts if you are young enough that withdrawal penalties would apply. Since I would almost never consider that option (even in the face of losing my house) it didn't cross my mind.
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retiredjg
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Re: How long to keep old investing records

Post by retiredjg »

I'm not sure I'd keep an entire file cabinet for that. For the Roth IRAs, the form 5498 that you get every May should indicate if you made a Roth IRA contribution the previous year. If you did rollovers into Roth IRA, there should be a 1099 in your taxes.

For ordinary IRA, all you need to know is how much is after-tax (usually non-deductible contributions) and that is recorded on your last Form 8606.
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