Is it safe to throw away old bills and account statements in Monthly folders after two years?*
Because these items were not needed for your taxes and since you will have already filed your tax return for that year, it is generally safe to discard these papers automatically.* Two years allows more than adequate time to resolve any vendor disputes; however, if you would like to keep items longer than two years, use additional labels to create a new set of folders for each added year. The actual legal time limit for lawsuits will vary somewhat from state to state but usually ranges between 2-3 years for nearly all types of claims. Keep in mind that most banks and service providers preserve your statements on file for seven years or more (also according to state laws). If you are concerned about keeping documentation beyond two years for the purpose of applying for future loans, you may use a Permanent folder titled Loan Payment History for keeping a record of regular payments to a creditor (see label sheet 4A in your Deluxe Kit). Refer to your Label Index for a full discussion of issues and available options.
*NOTE: While FreedomFiler® provides a method of automatic purging which eliminates the need
to review files, you must ultimately decide which documents are kept two years, ten years, or indefinitely.
FreedomFiler® is not liable under any circumstances for claims of loss or damage arising from suggested
document retention guidelines. Consult a professional advisor to determine your specific document
retention needs and adapt your system accordingly.