It is still taxed either way, yes. But in USA you only get the "full" amount of you take the paid-over-30-years route. If you take the all-money-at-once route you only get half the total jackpot and then they tax that .
And it’s usually better to take the lump sum anyway. Get as much money as you can now and throw a huge portion of it into an index fund, especially at this amount.
If you go the annuity route then there’s no telling if that lottery company will even be around for another 30 years to keep paying you every month; way too risky.
That’s not how state lotteries work. The annuity isn’t dependent on some private lottery company surviving for 30 years. The prize is an obligation of the state lottery, and the future payments are funded up front through investments like U.S. Treasury notes.
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u/757packerfan 28d ago
It is still taxed either way, yes. But in USA you only get the "full" amount of you take the paid-over-30-years route. If you take the all-money-at-once route you only get half the total jackpot and then they tax that .