A fixed percentage of every Mega Millions, Lotto America and Powerball ticket sold goes into each cash jackpot. The cash jackpot is all the money that the lottery has on hand from the sale of tickets in the game.
If you choose the Cash Option:
- Receive the entire available cash jackpot amount in a single payment.
- Federal and state tax withholdings are deducted before payment.
- Provides immediate access to all your winnings.
The Lottery also offers an annuity jackpot option that can help reduce taxes and offers the winner a 100% guaranteed income stream over time.
If you choose the Annuity Option:
- The jackpot is invested before taxes are deducted.
- Provides a guaranteed stream of payments over multiple years rather than receiving it all at once.
- Includes interest earnings, which is why the annuity amount is typically higher than the cash amount.
Powerball, Mega Millions & Lotto America Annuity Payments
- Paid in 30 graduated annual payments over 29 years.
- Each annual payment increases over time to help keep pace with the cost of living.
- The total annuity value includes both the original jackpot amount and the interest earned over the payment period.