Final IRS regulations have been issued on the federal income tax withholding for certain periodic retirement and annuity payments. The final regs update the rules for payments made after Dec. 31, 2020. Prior to the Tax Cuts and Jobs Act (TCJA), if no withholding certificate was in effect for a taxpayer’s retirement and annuity payments, the amount withheld was determined by treating the taxpayer as a married individual claiming three withholding exemptions. The TCJA required the IRS to determine the rules. The final regs now provide that the default withholding rate on periodic payments will continue to treat a taxpayer as married and claiming three withholding allowances.