Saving 401k and IRA records

Submitted by Dave Haynie on Sun, 2019-06-23 19:02

Want to get rid of as much record keeping as we can. I have everything all the way back to mid 60’s.

1. Since we retired in 2008 and immediately rolled over all the 401k’s into our IRA’s can we shred everything related to the 401k’s?

2. IRA’s I just discovered we need to save all 5498’s since the beginning of time. Does this only apply to IRA’s that we currently have open or does it include IRA’s that we closed long ago.

Thanks.



Submitted by Alan - IRA critic on Mon, 2019-06-24 00:07

  • Needing any of this data now is highly unlikely, so if you are not concerned with a remote outlier situation, you can shred all of the 401k forms and statements. Exceptions are if you distributed highly appreciated employer shares from your 401k to taxable and did not sell all these shares by 2015, you might wish to keep the 1099R to help establish the cost basis and NUA for those shares. Another unlikely situation is if you rolled after tax 401k dollars into your IRA before 2009, you need to file an 8606 on your IRA to get credit for the basis. I would keep the final statement and 1099R establishing the amount of after tax 401k dollars you rolled into your IRA.
  • With respect to IRA contributions, you can shred all 5498 forms up to 2012 for your TIRAs. However, I would keep the 5498 forms for Roth IRA contributions to establish your basis if you think there is a chance of taking a large non qualified Roth distribution. 3 years after your Roth is qualified (eg age 62 if it was qualified at 59.5) you can shred the Roth 5498 forms. 
  • As for statements of year end value of your IRAs, once RMDs begin you should keep them on your TIRA accounts to justify the amount of your RMD. Would keep these for around 5 years after the RMD year.
  • The above assumes your situation to be fairly normal with minimal IRS inquiries in the past or transactions you have made in the last few years that are out of the ordinary. If you have any alternate investments held in self directed IRAs (such as real estate), you should lengthen all the stated retention plans. 
  • This should eliminate most of the clutter. Recognize that these suggestions are highly subjective.

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