Mega Millions Jackpot: What’s the best payout option, lump sum or annuity?

Mega Millions lottery officials have announced that the massive $1.58 billion jackpot has been claimed.

The person who purchased the sole winning ticket in Florida for this potentially historic jackpot has reason to rejoice as well. The exclusive ticket that secured the jackpot was bought at a Publix store situated in Neptune Beach, a location roughly 20 miles to the east of Jacksonville, as indicated by game officials. The estimated value of the jackpot, which stands at $1.58 billion, translates to approximately $783.3 million in cash before the deduction of taxes, according to the officials' statement.

Mega Millions has granted prizes exceeding $1 billion on four previous occasions: once in 2018, once in 2021, once in 2022, and once in 2023. The chances of obtaining the winning ticket are approximately 1 in 302 million.

Lump sum or annuity
The champion has the option to select either a single lump-sum payment of $757.2 million or a series of 30 yearly installments. Both choices are provided before deducting taxes.

For those who opt for the annuity, the first payment will be followed by 29 consecutive yearly payments. These payments will gradually rise by 5% each year, as indicated by Mega Millions.

In the event of the recipient's demise before receiving all 30 payments, Mega Millions will ensure that the outstanding payments are disbursed according to the predetermined schedule, either to the chosen beneficiary or the estate.

The winning numbers for the Tuesday draw are 13-19-20-32-33, with the Mega Ball number being 14.

The possibility of establishing a new record-breaking jackpot has been a process spanning several months. The most recent jackpot winner emerged on April 18. In both Mega Millions and the Powerball lottery, jackpots continue to accumulate when no player secures a win.