POWERBALL participants are being advised to verify their tickets, as an unclaimed prize of $50,000 remains.
Officials in Indiana have sent out a notice to all players following one individual’s successful winnings on Saturday night.
The player overcame odds of roughly one in 913,000 to secure the $50,000 prize.
They narrowly missed hitting the jackpot by just one number.
Officials revealed that the winning Powerball ticket was purchased at Tobacco Road in Indianapolis.
They have since encouraged all ticket holders to ensure their tickets are stored in a secure location, as reported by the Fox affiliate WXIN-TV.
Additionally, they have suggested arranging a consultation with financial advisers.
Winners should also reach out to the state’s Hoosier Lottery service.
Since the amount is $50,000, the winner must schedule an appointment to claim their prize.
In Indiana, winners have 180 days from the drawing date to present themselves and claim their winnings.
Those who win over $1,200 are subject to a 3.23% state tax, in addition to a 24% federal tax obligation.
In Saturday night’s draw, one player hit an impressive jackpot of $527 million after purchasing a ticket from a store in Anaheim, California.
The winner, who remains unidentified, bought the ticket from a 7-Eleven, which stands to receive a $1 million bonus.
The winner will need to decide how they wish to receive their prize.
They have the option to receive the prize in installments over 30 years through an annuity, or as a lump sum payment.
Opting for the lump sum would result in a reduction to approximately $243.8 million.
However, the deductions won’t end there.
They will owe 24% in federal taxes, which could equate to over $58 million.
Fortunately, winners in California are exempt from state taxes.
Similarly, Florida and Texas do not impose tax on lottery winnings.
Conversely, players in New Jersey and New York face substantial tax rates.
In New York, winners are taxed over 10% on their earnings.
In New Jersey, any winnings exceeding $500,000 incur an 8% state tax.
Lottery winnings: lump sum or annuity?
Players who achieve substantial wins on lottery tickets generally face a decision: lump sum or annuity?
The two payout options can significantly influence the amount of money received from the prize.
Annuities provide payouts gradually over time, often spanning 30 years.
On the other hand, lump sums deliver all funds at once, but typically result in a lower immediate amount since taxes are withheld in full. This means that 24% of your prize goes to taxes instantly, alongside possible state taxes.
Annuities afford winners time to establish the necessary financial structure to manage a life-altering sum, while lump sums benefit from a one-time tax deduction.
Inflation should also be a factor in the decision-making process, as annuity payouts do not adjust for economic changes in the value of money. This can lead to receiving comparatively less at the tail end of an annuity period.
Given that different states and lottery games have unique prize payout methods, it is advisable to consult your state’s lottery for confirmation on payment protocols. A financial adviser can also assist in evaluating the pros and cons of each choice.
Experts have diverse opinions regarding whether it is best to take the lump sum or opt for the annuity.
