Why do Mega Millions and Powerball show different Cash Option amounts for similar-sized jackpots?
A fixed percentage of every Mega Millions and Powerball ticket sold goes into its CASH jackpot. The cash jackpot is all the money that the lottery has on hand from the sale of tickets in the game. If a player chooses the cash option, then the Lottery will pay entire cash amount to the winner (less income tax withholding amounts required by federal and state laws). The Lottery also offers an ANNUITY jackpot option that can help reduce taxes and offers the winner a 100% guaranteed income stream over time. The two games offer different types of annual income streams, giving the players more options. If a winner elects the annuity option, then the Lottery will invest the entire cash amount before taxes are deducted. The difference between the CASH jackpot and the ANNUITY jackpot is the interest earnings that build over time. The Powerball annuity jackpot earns more interest for two reasons. The Powerball Annuity Jackpot invests more money for a longer period of time. The Powerball annuity
