Folders not labeled as such are located on the mail server and will still count towards your quota. Note: If you prefer to use another folder on your computer, that's fine. Just make sure the folder is labeled (On My Computer).
For example, to have all messages that are older than 180 days moved from your account on the server to your Inbox on your computer, select the following:In the When a new message arrives: section, change the first drop-down to Date Received. Select Is Greater Than and type 180 in the days old field. This will appear in the Outlook Rules window (shown in Step 2) if you need to review, modify, or delete it in the future.
Setting up archiving for Outlook 2016 for Mac: