IBA Compliance Connection

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Do we need to obtain a wet signature on individual retirement account (IRA) and health savings account (HSA) documents, or can we use an electronic pin pad to obtain a signature? Also, do we need to keep hard copies of IRA and HSA files, or can we retain only electronic copies?

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Disclaimer: The Electronic Commerce Security Act (ECSA) was repealed and replaced with the Uniform Electronic Transaction Act (UETA), effective June 25, 2021. Please note that this change may affect the continued accuracy of this guidance as it pertains to the ECSA.

We believe that you may accept electronic signatures on IRA and HSA documentation. Both Illinois and federal law provide that a signature may not be denied legal effect, validity, or enforceability solely because it is in electronic form.

Additionally, you do not need to retain hard copies of IRA and HSA documentation. Both Illinois and federal laws provide that a representation or reproduction of a document (such as IRA and HSA agreements) may not be denied legal effect, validity, or enforceability solely because it is in electronic form.

For resources related to our guidance, please see:

  • Electronic Signatures in Global and National Commerce (ESIGN) Act, 15 USC 7001(a)(1) (“A signature, contract, or other record . . . may not be denied legal effect, validity, or enforceability solely because it is in electronic form.”)
  • Illinois Electronic Commerce Security Act, 5 ILCS 175/5-110 (“Information, records, and signatures shall not be denied legal effect, validity, or enforceability solely on the grounds that they are in electronic form.”)
  • Illinois Financial Institutions Electronic Documents and Digital Signature Act, 205 ILCS 705/10(a) (“If in the regular course of business, a financial institution possesses, records, or generates any document, representation, image, substitute check, reproduction, or combination thereof . . . that accurately reproduces, comprises, or records the agreement, transaction, act, occurrence, or event . . . [it] shall have the same force and effect under the laws of this State as one comprised, recorded, or created on paper or other tangible form by writing, typing, printing, or similar means.”)