Record-setting jackpot
Troy Keith, left, looks at the two lottery tickets he purchased from Pavan Patel on Monday at the Midnite Oil store on Signal Mountain Road. “I buy these maybe a couple times a year,” Keith said. “It’s a volunteer tax, which is good. That’s the way it ought to be,” he said. The Mega Millions jackpot has reached a record $1.6 billion.
DES MOINES, Iowa — Despite the terrible odds — one in 302.5 million for those keeping score at home — someone will eventually match all six numbers and win the Mega Millions jackpot, which now stands at an estimated $1.6 billion. It could happen as soon as Tuesday night, when the next drawing is held.
That would leave most of us disappointed but some lucky winner beset by a host of questions. Here are some answers for someone holding that prized lottery ticket for what would be the largest lottery jackpot in U.S. history.
I’VE WON. NOW WHAT?
Lottery officials recommend winners take a deep breath, put their winning ticket in a safe spot and consult with a reputable financial planner before popping over to the lottery headquarters. Their first decision is whether to take the cash option, which would be $904 million, or an annuity, with one initial payment and annual installments over 29 years. Nearly all winners opt for cash, but the annuity has advantages, as it reduces the tax bill a little and offers a stable flow of income that climbs by 5 percent annually.
HOW LONG DO I HAVE TO CLAIM THE JACKPOT?
States have different rules, so depending on where you purchased the ticket, you have from 180 days to a year.
DO I GET MY MONEY INSTANTLY?
No, you can’t just cash one of those oversized checks shown in all the winner photos. Payment speed also varies by state, but a week or two is common. Carole Gentry, a spokeswoman for the Maryland lottery, said the requirement is seven to 10 days in that state.
WHAT ABOUT TAXES?
For winners of $5,000 or more, all states automatically deduct 24 percent in federal taxes, but state taxes vary widely. Some states don’t withhold taxes from lottery winnings. For others, the state can take a big bite. In general, taxes eat up nearly half of lottery winnings.