Section 1. Short title
This Act may be cited as the Hardworking Seniors Act.
(a) In general
Section 223(c)(1)(B) of the Internal Revenue Code of 1986 is amended by striking and at the end of clause (ii), by striking the period at the end of clause (iii) and inserting, and, and by adding at the end the following new clause:
(iv) entitlement to hospital insurance benefits under part A of title XVIII of the Social Security Act by reason of section 226(a) of such Act.
(b) Treatment of health insurance purchased from account
Section 223(d)(2)(C)(iv) of such Code is amended by inserting and who is not an eligible individual after who has attained the age specified in section 1811 of the Social Security Act.
(c) Coordination with penalty on distributions not used for qualified medical expenses
Section 223(f)(4)(C) of such Code is amended by striking Subparagraph (A) and inserting Except in the case of an eligible individual, subparagraph (A).
(d) Conforming amendment
Section 223(b)(7) of such Code is amended by inserting (other than an entitlement to benefits described in subsection (c)(1)(B)(iv)) after Social Security Act.
(e) Effective date
The amendments made by this section shall apply to months beginning after December 31, 2026, in taxable years ending after such date.