No Word From Iowa Jackpot Winner Yet & Other Latest Details

Iowa’s latest Powerball jackpot winner is the talk of the entire state even though we don’t know who they are yet! With so much talk going on, here are the latest factoids from us at the Iowa Lottery:

You’ve likely already heard by now that a ticket purchased in Redfield, a Dallas County community of about 830 west of Des Moines, split Saturday’s giant Powerball jackpot with a ticket purchased in New York. Iowa’s half of the grand prize breaks down to $343.9 million annuity, or $198.1 million lump-sum option, before taxes.

The Redfield ticket was one of 33,536 Powerball plays in Iowa that won prizes in Saturday’s drawing. Those prizes ranged from $4 up to the jackpot!  We at the lottery remind our players to check their tickets for any prize they may have won, not just the jackpot. There are nine prize levels in the Powerball game, and your ticket may have won at one of the other levels, even if you didn’t win the jackpot.

People have asked us which is better: lump-sum vs. annuity. And it truly is up to the winner involved – they get to choose. That’s why we always suggest that our winners consult with a trusted financial advisor or lawyer to make plans for their winnings before they step forward to claim the prize.

What do the two options look like for this jackpot?

If the winner chooses the annuity option, they’ll receive 30 payments over 29 years. The money on hand from the sale of tickets for the jackpot plus the interest that would be earned over all those years adds up to $343.9 million. The payments to the winner would increase over time to accommodate for inflation. The first payment would be about $5.2 million, while the 30th and final payment would be about $21.3 million. The first annuitized payment would be made when the prize was claimed, and the other payments would then be made each October, the anniversary date of the jackpot being won. Withholding would apply to each payment made, with a current federal rate of 24 percent and state rate of 5 percent.

If the winner chooses the lump-sum option, they’ll receive a one-time payment of $198.1 million before taxes. Federal withholding of 24 percent ($47.5 million) would automatically apply to that total, along with state withholding 5 percent ($9.9 million). The lottery would make an after-tax payment of $140.6 million to the winner by wire transfer.

Iowa Lottery players bought nearly $1.9 million in Powerball plays for Saturday’s drawing. Nearly all of them (91 percent) were easy picks, meaning the player let the lottery terminal randomly select the numbers printed on the ticket. 
 
We had fun today prepping for our winner to come see us at lottery headquarters in Clive. We made a “money brick road” that the winner can follow in our auditorium as they make their way to the stage. Hey, this kind of thing likely only happens once in a person’s life, and we want the winner's jackpot claim to be a fun and memorable day! (P.S. The road is not made of real money.)

Comments

[Mary Neubauer]

Hi, Leo. In Iowa, the law requires that lottery winner's information is public, so names must be disclosed here.

[Leo]

Is there a way to win the lottery and not have the name disclosed in the media?

[Mary Neubauer]

Thanks, Sherry! We HAVE done our best to think through the real-world factors that would come into play with those payments.

[Mary Neubauer]

Hi, Jon. The annuitized payments would increase a bit with each payment. I didn't list the entire 30-payment schedule, as that would have been a bit ... long. The 30th and final payment of $21.3 million compares to the 29th payment of $20.3 million, for example. The payments would increase over time to accommodate for inflation.

[Sherry Kaestner]

I found the explanation of the annuity payout very interesting. I just assumed the annual payments were all the same amount. Sounds like the lottery is really trying to watch out for the winner over time, and by setting it up this way more principal is left to grow even more over time.