When you win a lottery jackpot, it can feel like a life-changing event. But it’s not as simple as winning a lot of money, and there are many things to consider before you claim your prize.
The Biggest Lottery Jackpots
A jackpot is a large sum of cash that is given to a person who wins the lottery. The jackpot can be in the form of a lump-sum payout, or an annuity.
The Lump-Sum Payout:
A lottery winner has two options when it comes to collecting their winnings, and this decision can have an impact on how much they receive in taxes. The first option is a lump-sum payment, which means the winner gets all of their lottery winnings at one time. The second option is an annuity, which involves a series of yearly payments.
The Annuity Payout:
A lot of people prefer the annuity option, because it means that they’ll receive all of their winnings over time. However, this isn’t always the best choice for everyone.
Mega Millions:
The Mega Millions lottery is a $2 game with a progressive jackpot that grows every time there’s no winner announced. It’s played in 45 states and the District of Columbia, as well as Puerto Rico and the U.S. Virgin Islands.
Powerball:
The Powerball lottery is a multi-state game that has produced billions of dollars in jackpots over the years. It’s also known for a unique feature that helps the jackpots grow even bigger: if a winner doesn’t pick all the numbers, the money goes to the next draw. This process is called a rollover and has made the jackpots of Mega Millions and Powerball so huge.