The Saver's Credit
The Saver's Credit is a tax credit available to eligible mid- and low-income taxpayers who save for retirement through an employer-sponsored retirement plan or IRA.
A tax credit is better than a tax deduction because it is a dollar-for-dollar reduction in the amount of tax that you owe. A tax deduction, on the other hand, lowers your overall taxable income and reduces the percentage of the amount of taxes you may owe.