[MBAtarga]

Something is amiss. You shouldn't be paying any taxes on non-used HSA funds. They roll over tax free each year and are never taxed so long as you spend them on documented expenses.

We (wife and I) max out our HSA yearly but don't touch it. Any out of pocket (deductibles for example) expenses comes out of savings. We are letting the HSA moneys invested in funds increase in value so that when we are on medicare we will have a worthwhile nest egg to pay for medical expenses in retirement.