LOTTO bosses have issued an urgent warning to all players as a $100,000 ticket is on the verge of expiring.
The Powerball slip, which dates back to a draw in August, will be worthless if it’s not cashed in today.
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A gambler came up trumps and matched four numbers and the Powerball on the game of chance, per Iowa lottery officials.
They bought the ticket from a Circle K store in Greenfield – located around 25 miles from Indianapolis.
The gambler must head to the state lottery offices in Indianapolis to claim their prize.
But, lotto chiefs have issued an urgent warning to all players, as reported by the Fox affiliate WXIN-TV.
Tickets should be stored in a safe place, and owners should meet with a financial adviser before cashing them in.
When the winner comes forward, they are set to lose a significant chunk of their prize before seeing a dime.
They have to pay 24% to the federal government in tax.
But, the deductions will not stop there.
This is because, in Iowa, players who win more than $600 have to pay 3.8% in tax to the state.
The rule doesn’t apply to players who scoop $600 or less.
The 3.8% tax players in Iowa have to pay is not the highest rate in the country.
In New York, for instance, lotto players must
The player matched four numbers and the Powerball, which means they defied the odds of one in around 913,000.
Usually, the feat would land a $50,000 prize but the player took advantage of the Megaplier option.
This meant their prize doubled to $100,000.
The last Powerball draw was on Saturday and the jackpot was not won.
This means the prize now stands at a whopping $142 million.
It has an estimated cash value of $65.8 million.
Lottery winnings: lump sum or annuity?
Players who win big on lottery tickets typically have a choice to make: lump sum or annuity?
The two payout methods can impact how much money you get from your prize.
Annuities pay out slowly in increments, often over 30 years.
Lump sums pay all at once but in a smaller amount, as taxes are withheld in one go. That means 24% of your prize goes to Uncle Sam right away. Many states tax winnings as well.
Annuities can provide winners time to set up the financial infrastructure required to take in a life-changing amount of money, but lump sums have the benefit of being taxed only once.
Inflation is also worth considering when making a choice, as payouts do not adjust with the value of a dollar. That means that you’ll likely be getting less valuable money towards the end of an annuity.
Each state and game pays out prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have varying opinions on whether to take the lump sum or take the annuity.
