A data retention policy defines what records the business keeps, for how long, where, and how they are securely deleted when no longer needed.
Key takeaways
What to know before you act
- Retention periods come from laws, contracts, tax rules, and legitimate business needs.
- Data kept without a purpose increases breach impact and discovery costs.
- Policies only work when systems are configured to retain and delete automatically.
Why it matters
What business leaders should understand
Keeping data forever increases breach impact, storage costs, and legal exposure. Deleting too early can break legal or contractual obligations. A written policy balances both.
The right response should reflect your environment, data, vendors, risk, and operational priorities. Use this guide as a practical starting point, then validate important decisions with the people responsible for your technology, cybersecurity, legal obligations, and insurance coverage.
Learn how Meta IT Pro can help with backup and disaster recovery, business continuity planning, and incident response services.
Related reading: What is data security? and Massachusetts 201 CMR 17.00.
Building the policy
Start by listing record categories—financial, tax, HR, customer, contracts, email, and operational records—and identify who owns each. For each category, determine the required retention period and the reason.
Tax records, for example, generally must be kept as long as needed to support a return; the IRS provides guidance on typical periods. Industry regulations, state laws, and contracts may require longer or shorter periods. Consult qualified counsel for regulated data.
- Record category and description.
- Owner responsible for the records.
- Retention period and legal or business basis.
- Storage location and format.
- Disposal method and documentation.
- Legal hold procedure that suspends deletion when needed.
Putting it into practice
Configure retention policies in Microsoft 365 or Google Workspace for email and files, and review line-of-business applications for deletion options. Include backups in the plan, since deleted records may persist there until backup retention expires.
Dispose of paper with shredding and devices with verified wiping or destruction. Review the policy annually and whenever regulations or business processes change.
Practical action plan
Steps your business can take
Inventory the types of records the business keeps.
Set retention periods based on legal, tax, contractual, and business needs.
Configure retention and deletion settings in email and cloud storage.
Dispose of paper and devices securely and document disposal.
Recommended next steps
Continue from this article.
These pages expand the specific risks and decisions covered in this guide. Use them to move from general understanding to the service, tool, or related topic that best matches your next question.
Related guide
What is data security?
Protect the data you decide to keep.
Explore nextRelated guide
Massachusetts 201 CMR 17.00
Review data security obligations for resident information.
Explore nextRelated guide
Does Microsoft 365 need a backup?
Align retention settings with backup.
Explore nextService
Compliance IT services
Configure retention to match your obligations.
Explore nextWarning signs
Do not ignore these indicators
- Customer data from years ago is still stored with no purpose
- Former employees' mailboxes kept indefinitely without review
- Old devices stored without being wiped
Frequently asked questions
Common questions, answered.
What is a data retention policy?
A document defining which records the business keeps, for how long, where, and how they are disposed of.
How long should business tax records be kept?
Generally as long as needed to support a return; the IRS publishes guidance on typical retention periods.
Do backups affect data retention?
Yes. Deleted records may persist in backups until backup retention expires, so include backups in the policy.
How Meta IT Pro can help
Related services and practical next steps
Explore the services connected to this topic. These links provide more detail about scope, safeguards, support, and how to start a conversation with our team.
Authoritative references
Sources and further reading
These primary sources support the guidance in this article and provide additional technical or consumer information.
Federal Trade Commission
Protecting Personal Information: A Guide for Business
Five principles for taking stock of, reducing, locking down, disposing of, and planning around personal information.
Internal Revenue Service
How long should I keep records?
IRS guidance on how long businesses should keep tax-related records.
National Institute of Standards and Technology
Protecting Data from Ransomware and Other Data Loss Events
A practical guide for small organizations on backup, recovery, and protecting data from loss events.
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