Fidelity Investment Statements: How Long Should You Keep Them?

Keeping investment statements is important for several reasons, including tax preparation, tracking investment performance, and resolving disputes. While the specific requirements may vary depending on the country and the type of investment, there are some general guidelines to consider. It is recommended to retain tax records and supporting documents, such as investment statements, for at least seven years to be prepared in case of an audit. Additionally, year-end investment statements should be kept for at least three years, while statements showing stock and mutual fund share purchases should be kept until you sell the shares. Properly managing and organizing these statements can help individuals stay on top of their finances and make informed decisions.

You can access 10 years of account statements online

As a Fidelity customer, you can access up to 10 years of your account statements online. This means you can view a decade's worth of monthly and quarterly account statements, year-end investment reports, interested party statements, trade confirmations, tax forms, and account records at your convenience.

To view these documents, simply navigate to the Statements and Trade Confirmation pages within Fidelity.com. From there, you can access PDFs of your statements, which offer better print quality and ensure the completeness of the information provided. Alternatively, you can view the statements as web pages or in the comma-separated values (CSV) format, although the latter option is only available for tax forms.

If you prefer, you can also request to receive hard copies of old statements by mail. To do so, send an email to Fidelity, specifying the account number, month, and year of the statement(s) you require.

Keep year-end statements for three years

It is important to keep your investment statements for several reasons. These statements allow you to check on the performance of your investments over time, helping you make informed decisions about buying or selling. They are also essential when it comes to tax time, as they show what you owe the government based on your earnings from investments. Additionally, keeping these statements can help you catch any mistakes or unauthorised transactions early on.

While it is important to retain these statements, it is also necessary to manage and organise them effectively. This is where knowing how long to keep them for is crucial.

Year-end investment statements should generally be kept for at least three years. This is because the Internal Revenue Service (IRS) normally doesn't examine tax returns that are more than three years old for most taxpayers. However, there are exceptions to this rule. If there are concerns of fraud or significant errors, the IRS may extend the audit window to six or seven years. Therefore, it is recommended to keep tax records for a minimum of seven years.

After three years, you can choose to discard your year-end statements. However, make sure to shred them to protect your personal information. Alternatively, use a computer shredding program if you store your statements digitally.

It is worth noting that if you are self-employed, the recommended retention period for annual statements is six years. This is in line with the IRS's examination timeframe for tax returns of self-employed individuals.

Keep tax records for at least seven years

Keeping tax records for at least seven years is a widely recommended practice. This is because the IRS audit window is typically three years but can be extended to six or seven years if significant errors are detected, such as underreporting income by 25% or more.

In some cases, the statute of limitations is even longer. For instance, if you omit more than 25% of your gross income from your return, the IRS has up to six years to initiate an audit and assess additional tax. Similarly, if you file a fraudulent return or don't file a return at all, the statute of limitations never expires.

Additionally, certain tax forms and records may need to be kept for longer than seven years for non-tax purposes. For example, it is recommended to keep W-2 forms until you start receiving Social Security benefits to verify your income if any issues arise.

It is also important to note that different states may have varying tax record retention recommendations. For instance, the California Franchise Tax Board can audit state income tax returns for up to four years, so residents of California should retain their tax records for at least that long.

To ensure compliance with tax laws and avoid penalties, it is always advisable to consult with a tax professional to understand the specific requirements in your area.

Save key investment records

It is important to save key investment records, whether as hard copies or digitally. This may mean printing them if you've opted for paperless statements, or downloading digital records to your computer or mobile device. Efficient organisation of your investment records ensures that you have important information readily available when you need it, such as when filing tax returns or dealing with issues concerning your brokerage firm.

You should keep all your investment statements for at least seven years to aid in tax preparation and to resolve any disputes about your account. The IRS recommends keeping tax records for a minimum of seven years. This is because the IRS audit window can extend to three years, but can expand to six or seven if significant errors, like underreporting income by 25% or more, are detected.

Year-end investment statements should be kept for three years. If you are self-employed, the Internal Revenue Service recommends keeping these statements for six years. You should also keep statements showing stock and mutual fund share purchases, reinvested dividends, and capital gains distributions for as long as you own the shares. You will need these records to establish your cost basis when you sell your shares.

Fidelity provides 10 years of account statements and year-end investment reports online. You can also request for copies of old statements to be mailed to your address of record at no charge.

Discard unnecessary records annually

It is recommended to review your records annually and discard those that are no longer needed. This will help you stay organised and ensure you only keep the most important documents. For example, once you receive an end-of-year summary statement from your financial institution, you can usually dispose of the monthly or annual statements you've accumulated throughout the year.

When it comes to tax records, the IRS recommends keeping them for a minimum of seven years. This is because the IRS audit window can extend up to three years but can be expanded to six or seven years if significant errors are detected. Similarly, keep supporting documents such as receipts and payment records for at least seven years.

For investment records, it is generally recommended to keep year-end statements for three years. If you are self-employed, the Internal Revenue Service recommends keeping annual statements for six years. Keep statements showing stock and mutual fund share purchases, reinvested dividends, and capital gains distributions for as long as you own the shares. You will need these records to establish your cost basis when selling your shares and to claim tax deductions.

When discarding any type of financial record, it is important to do so securely to protect your personal information. This includes shredding paper documents and using software to securely erase digital data.

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