I closed out my 401K last year. I was over 70 1/2 at the time and getting RMD distributions. Of course my tax liability is large. Is there any way I can reduce this liability? Will opening an IRA with some of the money help?
It's unlikely that there is anything you can do to reduce your 2019 tax liability now. If it has been less than 60 days since the distribution from the 401(k) you could roll the money over to a traditional IRA to continue to defer the taxes, but beyond that deadline the taxable amount of the distribution will be included in taxable income and there is essentially nothing you can do.
Because of your age in you are not permitted to contribute to a traditional IRA for 2019.
Thanks SweetieJean. Yes, only the amount of the total distribution that was in excess of the RMD for 2019 is eligible rollover. My guess, though, is that the distribution was made more than 60 days ago and none of the distribution can be rolled over.