You cannot contribute to a 401(k), a traditional IRA, and Roth IRA because of IRS rules

This one is false as a concept, as the IRS does not have any rules against having all three of these retirement accounts. They do ban a lot of things (which include random and sometimes weird claims made in the name of deductions), but they will not stop you from trying to save for retirement. However, there are some limitations when it comes to how much you can contribute to these accounts. These limits are in place, and you just have to be careful how you manage your finances and how you put them into each account.

If you have a retirement plan that is sponsored by your employer (be it a 4019k, 457, 403(b), or a thrift savings plan), you can contribute to the account up to $18,000 each year, with an additional $6,000 if you have turned 50 already. On top of this amount, if you are eligible to have a Roth IRA and a traditional IRA, you can divert part of that sum into each of these other accounts as long as the contribution does not end up going over the yearly limit imposed by both accounts (which is $5,500 and an extra $1,000 if you are over the age of 50).

The only thing that could stop you from having all three retirement accounts is not having the funds to be able to contribute to all of them. However, a savvy saver could end up saving up to $23,500 each year and even more, about $30,500, if they have turned 50!

If you are curious about the way in which these accounts function and want to read more before you settle on opening one (or another one, even), we recommend you read this book on the subject!