The giant jackpots just keep growing! Their combined total is now more than $1.4 billion.
This is the third time that the jackpots in Powerball® and Mega Millions® have simultaneously topped $500 million.
The Powerball jackpot is currently the bigger of the two, now standing at an estimated $875 million annuity, $441.9 million lump-sum option for the game’s next drawing on Saturday. That’s the third-largest jackpot in Powerball history.
Not to be left out, the Mega Millions jackpot for that game’s next drawing tomorrow night is an estimated $560 million annuity, $281.1 million lump-sum option.
Even though they’re both in the stratosphere, the jackpots have a lot of room to go before they would be in record territory. The world record for a lottery prize is $2.04 billion, won in the Powerball game in November with a ticket in California. The largest jackpot ever offered in Mega Millions was $1.54 billion, won in October 2018 with a ticket in South Carolina.
3 Iowa Tickets That Came Close This Week
Three times this week, tickets purchased in Iowa came close to having at least a share of the Powerball jackpot. The tickets matched the winning numbers in different ways and ended up winning prizes of $2 million, $150,000 and $100,000 respectively.
The $2 million and $100,000 prizes were won in Monday’s Powerball drawing, while the $150,000 prize was won last night’s drawing. They’re a reminder that you can win significant amounts even if you don’t hit the jackpot.
Here are the details about the latest of those three big wins: The $150,000-winning ticket was purchased at Casey’s, 1402 Ninth St. SE in Dyersville. It matched four of the first five numbers and the Powerball to initially win a $50,000 prize in last night’s drawing. But whoever bought the ticket added the Power Play® option to the ticket, which multiplied the prize to $150,000.
The winning numbers in last night’s Powerball drawing were: 23-35-45-66-67 and Powerball 20. The Power Play number was 3.
Details About Cash vs. Annuity
There are a couple common misconceptions we repeatedly hear about the cash vs. annuity amounts for a jackpot: The cash amount is not the annuity amount minus taxes. And the cash amount is not a set percentage of the annuity total. 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 all the interest generated over the years adds up to the annuity amount of the jackpot. Withholdings would be 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 for 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 a winner would owe are dependent upon that person’s financial circumstances outside of winning the lottery.
In some instances, the withholdings may not be enough, in other instances, they may be too much. The details would be sorted out in the winner’s income-tax filing for the year. That is one of the reasons the Iowa Lottery always encourages its winners to consult a lawyer or financial planner who can help answer their questions.
Easy Pick vs. Your Own Numbers
Another point of fascination about winning tickets in the games is whether they were an easy-pick play or the player chose their own numbers.
Generally, 90 percent or more of the tickets purchased in Powerball and Mega Millions are easy picks, meaning that the player opted to have the lottery terminal randomly select the numbers involved.
The odds of winning are the same for every ticket in the games, whether the player buys an easy pick or chooses their own numbers. There are more easy-pick winners simply because the vast majority of the tickets purchased are easy picks.
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. on 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.
