Skip to content

Powerball jackpot hits $1.2 billion. Which payout is best

The Powerball jackpot hit $1.2 billion on Oct. 3, 2023, the third-biggest prize in the game’s history.

Scott Olson | Getty

The Powerball jackpot has climbed to an estimated $1.2 billion — the third-largest prize in the game’s history — without a winner Monday night.

Among the winner’s big decisions will be the choice between a lump sum payout worth $551.7 million or an annuitized prize of $1.2 billion. Both options are pretax estimates.

The next Powerball drawing is Wednesday at 11 p.m. ET, and the odds of winning the jackpot are 1 in 292.2 million.

More from Year-End Planning

Here’s a look at more coverage on what to do finance-wise as the end of the year approaches:

While the lump sum provides a full prize up front, the annuity offers one immediate payment, followed by 29 annual payouts that increase 5% each year, according to Powerball.

The lump sum payout is ‘a mistake’

Weigh the long-term plan for winnings

IRS will tax more on resold tickets according to new law

However, some winners may later decide to sell the annuity to a third-party company for a lump sum payment. “The issue is they don’t get the best bang for their buck on that payoff,” Loyd warned.

Wednesday’s Powerball drawing comes less than three months since a single ticket sold in California won the game’s $1.08 billion jackpot. This is the first time the game has seen back-to-back billion-dollar jackpots. Meanwhile, the Mega Millions jackpot is currently worth an estimated $315 million, and the odds of winning that grand prize is roughly 1 in 302 million.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *