Davidson News

Davidson News

Mega Millions Lottery of $1 Billion Jackpot : Annuity or Lump Sum?

The jackpot has increased to an estimated $1.25 billion as an annuity and $625.3 million as the lump sum cash option in Mega Millions lottery.

$1 Billion Lottery Jackpot of Mega Millions: Annuity or Lump Sum? (Photo by Scott Olson/Getty Images)

The Mega Millions lottery jackpot has increased to an estimated $1.25 billion as an annuity and $625.3 million as the lump sum cash option after Tuesday’s drawing produced no winners.

In recent days, there has been increased interest in the methods by which Mega Millions lottery jackpot winners might receive their winnings, including one-time payouts and annuities. As of late July, when the Mega Millions lottery jackpot exceeded $1 billion before taxes, it occurred.

As stated by Danielle Frizzi-Babb to FOX Business, the spokesman for the Ohio Lottery Commission, the cash option prize is the present-day value of the jackpot, or the cash that is in the Mega Millions lottery jackpot pool. The annuity symbolizes the future worth of the cash value, which is used to buy bonds to pay for the annuity over a 30-year period.

The two payout possibilities for a Mega Millions lottery jackpot vary from person to person, according to Emily Irwin, the senior director of advising at Wells Fargo, who spoke to FOX Business. Winners of the Mega Millions lottery jackpot who select for the annuity option earn a portion of their money upfront. According to the Mega Millions lottery’s website, payments continue for a further 29 years, growing 5% each time.

READ ALSO: Former Mayor Patrick Wojahn of Maryland College Town Pleads Guilty to 140 Child Pornography

As interest rates have increased and the odds of winning the Mega Millions lottery have changed, there have been an increasing number of large lottery grand prizes. 

A greater interest rate becomes important when receiving a jackpot payment through an annuity since over the course of three decades, the annuity can rise in size. The odds of winning one of the Mega Millions lottery’s jackpots increased in 2019, when they were set at around 1 in 302.6 million and they remain at that ratio today.

Officials of the Mega Millions lottery believed that by making jackpots more difficult to win, the prizes would continue to roll over for weeks and build huge pots of money, which would then lead to more sales. 

The biggest jackpot for the Mega Millions lottery was $1.537 billion in 2018. According to the Mega Millions website, the lottery’s grand prize hit a record-breaking $1.348 billion in January. According to a recent article from FOX Business, in July, Powerball had a Californian match every single number, giving them a $1.08 billion prize. It was only surpassed by two other jackpots in Powerball history by larger sums.

READ ALSO: Child Tax Credit: Americans To Recieve Payments Up To $2000

Leave a Comment