The Powerball® jackpot has climbed even higher for the game’s drawing tonight while the Mega Millions® jackpot also continues to grow for its next drawing on Friday. Combined, the two giant prizes top $1.3 billion.
This is just the third time that the jackpots in Powerball and Mega Millions have topped $500 million at the same time.
The Powerball jackpot for tonight’s drawing now stands at an estimated $750 million annuity, $378.8 million lump-sum option. That’s the sixth-largest jackpot in the history of the game.
Not to be left out, the Mega Millions jackpot for that game’s next drawing on Friday is an estimated $560 million annuity, $281.1 million lump-sum option.
Really, REALLY Long Odds Of Winning Both
Is it possible that you could win both jackpots? Well, yes. But don’t count on it.
The odds of winning the jackpot in Mega Millions are about 1 in 302.6 million, while the odds of winning the jackpot in Powerball are about 1 in 292.2 million.
To calculate the odds of winning both jackpots, you multiply 302.6 million by 292.2 million. The answer to that equation involves 15 zeroes: It’s about 1 in 88 quadrillion (that’s 88,000,000,000,000,000).
Details About Cash vs. Annuity
Let’s talk about cash vs. annuity and what those amounts mean. The cash option is NOT the annuity amount minus taxes. Here are the actual details involved:
If a jackpot winner in either game chooses the annuity option, they would receive 30 payments over 29 years that add up to the annuity total.
In that instance, the cash on hand in the jackpot pool from the sale of tickets in the game is invested in securities. The initial amount invested plus the interest generated through the years adds up to the annuity amount of the jackpot. Withholdings are applied to each payment that the winner receives.
If a winner were to pass away before receiving all their payments, the money would go into their estate. The lottery would make future payments as determined by the estate or the court.
If a jackpot winner chooses the cash option, they receive a one-time payment equaling the amount in the jackpot pool from the sale of tickets in the game. There is no interest income in that scenario because the money isn’t invested. The winner receives the lump-sum amount in one payment, with withholdings applied to the entire amount.
Withholding Rates In Iowa
Here in Iowa, 24 percent federal withholding applies to a jackpot prize along with 5 percent state withholding. Those amounts are automatically applied before the prize is paid and can’t be modified or waived.
The withholdings are designed to cover the jackpot winner’s tax liability from claiming a large lottery prize. But the total taxes that the winner would owe depends upon their financial circumstances outside of winning the lottery.
In some instances, the withholdings are not enough, in other instances, they’re too much. The details would be sorted out in the winner’s income-tax filing for the year. That’s one of the reasons the Iowa Lottery always encourages its winners to consult a lawyer or financial planner who can help answer their questions.
The Deadline To Buy
Remember that the deadline in Iowa to buy tickets for the Mega Millions and Powerball drawings is 8:59 p.m. the night of the drawing. If you buy a ticket after that, it will be for an upcoming drawing and you won’t be in the running for that night’s giant prize.
And, please remember to play responsibly. You only need one ticket to have a chance to win.
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