Under the Illinois Revised Uniform Unclaimed Property Act (Illinois RUUPA), HSAs generally are presumed abandoned thirty-three years after the date the account was opened, unless there is a distribution or the owner dies.

HSAs are governed by a provision in the Illinois RUUPA that covers a wide range of tax-deferred accounts, including HSAs. Any one of five separate abandonment periods could apply to these accounts, depending on which period comes first. Because HSAs are not subject to mandatory distributions, the second and third abandonment periods (bolded below) are the ones we think most likely would apply:

(1) Three years after the date by which distribution of the property must begin to avoid a tax penalty. This likely will be inapplicable to HSAs, which are not subject to mandatory distributions.

(2) Three years after thirty years have passed from the date of account opening.

(3) If the HSA owner has died, two years after the date of a distribution or attempted distribution.

(4) If the HSA owner has died, two years after the date of a required distribution as stated in the plan. This likely will be inapplicable to HSAs, which are not subject to mandatory distributions.

(5) If the HSA owner has died, two years after the date by which distribution must begin to avoid tax penalties. Again, this likely will be inapplicable to HSAs, which are not subject to mandatory distributions.

For resources related to our guidance, please see:

• Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-203(a) [Effective 1/1/18] (“(a) . . .  property held in an account or plan, including a health savings account, that qualifies for tax deferral under the income-tax laws of the United States is presumed abandoned if it is unclaimed by the apparent owner 3 years after the earlier of: (1) the date, . . . by which distribution of the property must begin to avoid a tax penalty . . . or (2) 30 years after the date the account was opened.”)

• Revised Uniform Unclaimed Property Act, 765 ILCS 1026/15-203(b) [Effective 1/1/18] (“(b) If the owner is deceased, then property subject to this Section is presumed abandoned 2 years from the earliest of: (1) the date of the distribution or attempted distribution of the property; (2) the date of the required distribution as stated in the plan or trust agreement governing the plan; or (3) the date, if determinable by the holder, specified in the income tax laws of the United States by which distribution of the property must begin in order to avoid a tax penalty.”)