When the Mega Millions jackpot reaches $1 billion, what’s the best method to collect your winnings: annuity or cash?

Since April, when it was last won, the Mega Millions jackpot has continued to grow, and for only the fifth time in the lottery’s history, it has reached 10 figures. Due to the fact that there were no winning tickets in Friday’s Mega Millions drawing, the jackpot has increased to $1.05 billion.

How to play the Mega Millions lottery

A ticket for Mega Millions costs $2. To participate, you must select six numbers from two distinct pools: five principal numbers between 1 and 70 and a Mega Ball number between 1 and 25. To win the jackpot, each of the six numbers that are drawn must be matched. If multiple contestants get each number correct, the prize is split.

cash option versus annuity option

Winners have the option of receiving their winnings in installments (the annuity option) or as a single sum (the cash option). But which option is superior?

If a single player wins the $1.05 billion windfall in the next Mega Millions drawing on Tuesday, 1 August, they will be able to collect the entire amount if they choose to receive 29 annual payments. These installments increase by 5% annually. If the winner would prefer to receive their prize all at once, they will have to settle for a lesser quantity. The cash option for Tuesday’s drawing stands at $527.9 million.

In both cases, these are gross amounts, so lump-sum beneficiaries will be subject to a one-time tax bill, whereas annuity recipients will be subject to taxes each time they receive one of their annual payments.

Annuity or cash for $1bn Mega Millions jackpot?

Consequently, selecting the cash option may make satisfying your tax obligations simpler. It also gives victors greater immediate flexibility to invest in substantial assets, such as stocks and real estate. On the other hand, the annuity option provides winners with a larger portion of the windfall after taxes and prevents them from immediately spending their winnings.

Where is Mega Millions played in the United States?

Alabama, Alaska, Hawaii, Nevada, and Utah are the only jurisdictions in the United jurisdictions where Mega Millions is not offered. The Virgin Islands and the District of Columbia also participate. Every Tuesday and Friday at 11 pm ET/8 pm PT, draws are held.

What were the Mega Millions numbers for July 28?

The winning numbers drawn on Friday were 05, 10, 28, 52, and 63, and the Mega Ball was 18. Megaplier was five times.

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