How Long to Keep IRA Statements

As an organization executive or business owner, you understand how vital maintaining your tax records is. You must keep things ordered as a legal and financial necessity. Keeping the correct documents filed and accessible ensures you comply with tax and industry regulations. Due to the sensitive nature of your business documents, it is also crucial that you know when and how to discard them. Here is a guide on how long to keep IRA statements and how to effectively destroy them.

Keeping Your Tax Records

Before diving into the details, it is important to understand that each organization is unique. You may need to keep records for more extended periods. Remember to consult your tax professional before destroying documents. Here are guidelines on how long to keep records.

1. Tax Returns

After you file tax returns, you must keep records for at least three years. This period aligns with the IRS’s auditing statute of limitations. Most organizations keep records for six years as a precaution and security layer.

2. Supporting Materials

Supporting documentation is an essential part of filing tax returns. These documents include all receipts, 1099s, W-2s and other items validating expenses and income. Your organization should keep these records for three years or the extra six if you have complex deductions or unreported income.

3. Exceptions

According to the IRS, several exceptions exist to the three-to-six-year record-keeping requirements:

• Keep records for seven years if your organization files a bad debt deduction or a claim for loss of worthless securities.
• Keep records permanently if your business does not file a return or at any point files a fraudulent return.
• Keep employment tax records for at least four years after the tax is paid or due.

Keeping Other Financial Records

A critical component of your business is knowing how long to keep financial records before securely shredding them. Here are some guidelines:

• Business financial records: Keep documents like balance sheets, income statements and other financial business records for at least seven years or longer depending on loans, potential investor requests and audits.
• Investment records: Keep stock transaction records, mutual fund sales and other asset documentation for as long as you hold the investments. These records will help determine tax consequences if you sell.
• Property and real estate documents: If you own property or real estate as a business owner, keep records, receipts for improvements and related documents while you own the property. You’ll need these documents to determine capital gains when selling the property.

Shredding Tax Documents

When you have kept your IRA documents for the required time, you must destroy them safely and securely according to compliance bodies and legislation. TrueShred provides commercial shredding services in Washington, D.C., Maryland, and Northern Virginia. We offer various tax and business document shredding services:

• On-site shredding: TrueShred’s mobile shredding services allow for securely shredding documents curbside at your facility. On the scheduled service day, our highly trained team arrives with our mobile shredding trucks and collects documents from your offices in secure containers. We then shred the tax documents, destroying them in 100% real-time on-site. You can monitor the process live via an encrypted video feed. Once the shredding is complete, we recycle the destroyed particles sustainably and provide you with a Certificate of Destruction.
  
• Off-site shredding: We have a destruction facility in Manassas, VA. Your business can transport its financial documents to the facility. Alternatively, our uniformed team can pick up materials from your office and securely ship and destroy them off-site. We maintain a secure chain of custody and offer you destruction records once your items are destroyed and recycled.
• One-time shredding: Should your organization need one-time bulk shredding or have a few tax- and business-related records that must be destroyed, we will help. We can complete our once-off service on-site at your commercial property, or we can transport the documents and materials to our destruction facility.
• Ongoing shredding: Many financial institutions, banks and organizations have high-volume or ongoing shredding requirements. We help you comply with legislation, save space and securely destroy your tax and financial documents. Schedule weekly, biweekly or monthly services. We provide you with secure consoles and locked bins to deposit papers, mixed media and other sensitive materials that are ready for shredding.

Benefits of Shredding Your Tax Documents

TrueShred’s advanced shredding services deliver various benefits:

• Efficient document destruction: We destroy documents more quickly and cost-effectively than if you tried to do it yourself. Our curbside shredding services mean you benefit from real-time, on-site shredding without your employees spending their time on this task.
• Enhanced data protection: Safeguard your sensitive tax information, documents and materials through specialized shredding techniques. Adhere to legal compliance regulations and standards and avoid penalties.
• Reduced carbon footprint: We turn destroyed, unrecoverable materials into recycled products, making TrueShred the go-to partner for sustainable shredding.

Shred IRA Documents Securely With TrueShred

Your tax documents contain sensitive information you cannot afford to keep around longer than necessary. TrueShred helps organizations destroy IRA documents and supporting materials and recycles destroyed particles. We are NAID AAA Certified, meaning we comply with industry-best destruction standards.

Request a pricing quote or complete our contact form today!