Is your office or guest room closet cluttered with boxes of old bank statements, pay stubs, credit card statements and tax returns? If so, take some time during these cold months and de-clutter! Here are some things to keep in mind when deciding what to keep and what to toss.

The most important documents to hang on to are your tax returns. Retain your actual tax returns permanently. You can generally shred the support documents after seven years. You do not need to keep bank and brokerage statements past seven years; however, it is important to keep documentation of initial stock purchases, mutual funds and other long term assets purchased  so you can calculate your basis when you sell them.

Keep documentation regarding the purchase of your home and any additions or major improvements as long as you live in it and for seven years past the year of sale. Keep records on money contributed to and distributed out of your IRA and 401(k) s. A year end statement should suffice.

Now, what can you shred? Pay stubs (after you have received your W-2 for that year), ATM receipts, bank deposit and withdrawal receipts, and copies of monthly bills such as credit card statements, utilities, cable TV, etc, unless you need them for income tax purposes.

For more detailed information on what to keep, check out IRS Publication 552, Recordkeeping for Individuals at www.irs.gov.