Within how many years should inactive files be retained?

The retention period for inactive files is often determined by regulatory requirements or organizational policies aimed at balancing the need for record-keeping with the management of storage space and resources. Retaining inactive files for a period of two years allows organizations sufficient time to reference these materials if necessary for audits, legal inquiries, or other business needs. This time frame is generally considered a best practice, as it ensures that important documents are not prematurely discarded while also encouraging efficient management of office space.

Different organizations may have varying policies based on their specific circumstances, but the two-year mark is a common standard that aligns with many compliance guidelines and industry practices, making it practical for institutions to apply.