A jackpot winner may select an ANNUITY or a CASH payment option. Whats the difference?
The annuitized value of a jackpot is the amount that the jackpot is worth when paid to a winner in annual installments. The ANNUITY payment option pays the jackpot prize in annual installments. If the ANNUITY payment option is selected, Megabucks Plus® winners are paid in 30 equal annual installments, Hot Lotto® jackpot winners are paid in 25 equal annual installments, Powerball® jackpot winners are paid in 30 graduated annual installments and Mega Millions jackpot winners are paid in 26 equal annual installments. The CASH payment option pays the jackpot prize in a one-time-only cash payment. The CASH payment option is generally 40-50% less than the annuitized jackpot amount because it does not contain the interest that would have accumulated over the years of incremental prize payments. If the CASH payment option is selected, the jackpot winner receives the jackpot prize money that would have been invested in order to fund the annuitized jackpot. *If there are multiple winners of a ja
Related Questions
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- A Megabucks or Powerball jackpot winner may select an ANNUITY or a CASH payment option. Whats the difference?
