ELI5 Why lotto winners almost always take the smaller cash prize

If you're one of the lucky few who has won the lottery, one of the most important decisions you can make is how to receive your winnings A lottery annuity

Say you win a $10 million prize If you take the lump sum option, the entire sum is subject to income tax that year However, if you choose the annuity option,

annuity lottery calculator Under the annuity plan, winners will receive an immediate payment and then 29 annual payments that rise by 5% each year until finally reaching

annuity vs lump sum lottery Initial and Annual Annuitized Payments: All annuitized prizes shall be paid in graduated annual payments The annuity option Jackpot Prize amount will be