Saver's CreditIn the EGTRRA, Congress added a new credit for modest income taxpayers (If you are close and self-employed, including sole employee of your own corporation, check out the Uni-K which can help you save for retirement and reduce your AGI.) The saver's credit is only good from 2002 to 2006 and isn't available to minors, dependents or full-time students. The maximum credit is for an contribution/investment of $2000/year. It is also only applicable to certain types of retirement accounts.
Qualify, but don't have enough money left at the end of the month? Let your parent, grandparents, kindly uncles and aunts know that you are trying to save for retirement and see if they would be willing to help(e.g. "Uncle Sam will help me, how about you?") by loaning or gifting you the money. If you qualify, the minimum you will get the first year is an 11% return on your investment. Better than any bank I know!
In the highest credit percentage, you are really only contributing 1/2 of the money and Uncle Sam is contributing the other 1/2(though you have to put it in there for him). A 100% return on your investment!