Can A Group Choose Cash AND Annuity?

We’ve got some real planners here in Iowa! We’ve heard from a couple folks who tell us they are definitely planning to win the lottery as part of the group they buy tickets with, and they want to know if some members of the group can choose the lump-sum option for a jackpot prize while the rest of the members take the annuity option. The short answer is that it’s an either/or situation: The whole group needs to choose one option or the other.

 

When you win a jackpot, whether it’s with a ticket you bought on your own or as part of a group, we only issue one check for the winnings. There are a variety of security and financial rules in place requiring that to happen.

 

If you’re part of a group of 25, we don’t cut 25 checks, we just give you one check and the members of your group then divide up the money from there. The entire group has to decide on either the cash or annuity option before the prize is claimed.

 

And to ensure that one person isn’t stuck with all the liability for that taxable income, all members of the group sign an IRS Form 5754 so they’re listed for tax-reporting purposes. On the form, each person states how much of the prize they’re claiming.

 

We keep a list of tips about group play on our website. Click here to check them out.