Thanks, beeker. I looked at Form 8880 and worked the numbers in my head for the sake of example. Glad our benevolent government thought to give po folks such a credit, but it forgot that people who make so little money usually do not have anything extra to put into a retirement vehicle. Note the severe restrictions and the low percentage (0.1 factor) as your income approaches $50,000. And it appears that you have to married filing jointly to even get the 0.1. I'd like to meet someone who actually was able to take such a credit!