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Tuesday, March 5, 2024

Both Powerball and Mega Millions jackpots are above $400 million. Here’s what to do if you win

  • Powerball's jackpot has jumped to $410 million for Wednesday night's drawing.
  • The top prize for Mega Millions is $432 million, with the next drawing set for Tuesday night.
  • If you beat the odds and win, there are some things to consider before claiming your winnings.

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The Powerball jackpot has jumped higher again.

With no ticket matching all six numbers drawn on Saturday, the top prize is now $410 million for the next drawing on Wednesday night. Mega Millions' jackpot is $432 million for Tuesday night's drawing.

While the chance of a single ticket matching all six numbers in either game is miniscule — 1 in 302 million for Mega Millions and 1 in 292 million for Powerball — it's still worth considering how you would handle such a windfall if you were to beat the odds.

The after-tax amount would be life changing. Experts say large lottery winners should assemble a team of experienced professionals — an attorney, a tax advisor and a financial advisor — to help navigate the windfall.

Here are some things winners should consider before heading to lottery headquarters to claim their prize.

Who can I tell?

The general advice is to tell as few people as possible. Due to scammers and strangers' penchant for tracking down lottery winners, it's best to keep the exciting news close.

You may be able to shield your identity from the public, depending on what state you're in.

Only a handful allow winners to remain completely anonymous. In others, you might be able to claim the prize via a trust or limited liability corporation, or LLC, that doesn't have your name on it — yet you need to plan for that.

You really should never take the money in your individual name if possible.Kurt PanousesFounder of Panouses Law Group

"You really should never take the money in your individual name if possible," said Kurt Panouses, founder of Panouses Law Group in Indialantic, Florida, and an expert in helping lottery winners.

Lump sum or annuity?

You get to choose between receiving your win as a lump sum of cash or as an annuity spread out over three decades. Either way, the money will be taxed when you receive it.

Right now, federal income taxes are low from a historical standpoint — and it's impossible to know where they may be years from now. This means that from a tax perspective, it could cost you more to take the annuity because tax rates are more likely to increase down the road than decrease, experts say.

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