The Powerball Annuity Jackpot is invested in a wider variety of securities than the Mega Millions Jackpot, allowing more interest to be earned. It is important to understand that the lottery is invested in these securities; not the winner.
All of the securities used to support both games' jackpots offer significant levels of U. The winner has a contract with the states to pay the annual prize payment, no matter what happens to the securities.
If a player chooses the cash option, then the lottery will pay entire cash amount to the winner (less income tax withholding amounts required by Federal and State laws).Super Kansas Cash jackpots are paid in one lump sum within two weeks of filling out a claim form.Federal and State taxes are withheld on all lottery prizes in excess of ,000.The Powerball annuity jackpot earns more interest for two reasons.The Powerball Annuity Jackpot invests more money for a longer period of time.
Since the two games' jackpots are invested differently, if the CASH jackpots are the same, the Powerball jackpot will pay a larger ANNUITY over time than Mega Millions.