‘If you’re lucky enough:’ How to handle ‘Mega Millions’ tier riches

On December 28, 2024By Littum

Whether you bought a ticket yourself or got some as a stocking stuffer, could the $1.15 billion Mega Millions jackpot have your name on it? The odds may be against you – like 1 in 302.6 million – but that doesn’t mean you can’t prepare.

If there is a winner, the Mega Millions jackpot would be the fifth largest jackpot in Mega Millions history, making the take home prize a lump sum of an estimated $516.1 million after tax. How does one even begin to prepare for such a windfall?

The “smartest” thing to do, in case you win, is to keep calm and carry on, financial advisors shared with USA TODAY back in March. And avoid posting all the details of your winnings on social media.

“If you’re lucky enough to win the lottery, keep it quiet,” Rob Burnette, an Ohio-based financial advisor at Outlook Financial Center. “Get organized and make a plan. Consider staying anonymous if that’s an option.”

Who, if anyone, should I tell about my Mega Millions winnings?

If you find yourself in a situation where you stand to inherit millions of dollars, the best people to get in touch with are financial experts right away so scammers don’t get a chance to bleed you dry before you even get the chance to make money in.

“Scammers usually try to get you to wire money to ‘taxes’ or ‘fees’ or may try to get you to give them a bank account number that they will then clean out,” Mega Millions said. “No real lottery tells winners to put up their own money to collect a prize they’ve already won.”

No Mega Millions representative would ever call, text or email anyone about winning a prize, so be especially wary of who contacts you out of the blue. In some states, you can remain anonymous if you win.

Steve Azoury, owner of Azoury Financial in Troy, Michigan, who has advised many lottery winners, including a $181 million winner “who said ‘If I didn’t know you before, I won’t know you now.'”

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“Get a tax attorney and a tax accountant right away, and then a financial advisor,” according to Azoury. “They will work hand in hand to figure out the plan.”

The “plan” will help you get some things out of the way, such as whether you want to choose to take an immediate cash payout or whether you prefer the money spread over time.

The difference between the two is outlined below:

An annuity option makes an initial annual payment followed by 29 annual payments. Each payment is 5% larger than the previous one.
The cash option is a one-time payment equal to all cash in the jackpot prize pool. In Tuesday’s drawing, it is $413.5 million.

However, the decision will likely depend on your goals, your age and what lottery rules are in place for beneficiaries to continue receiving payments or whether you are likely to waste a lump sum. The size of the lottery win as well as your current and expected earnings are some things to consider, according to Mark Steber, chief tax officer at Jackson Hewitt.

Your financial expert or experts can also help you find a “fall guy,” a person or advisor “who will keep you from lending to someone who tells people that all the money is tied up in investments, not available,” Azoury said. “We have nothing available to help you and we are not interested in your project.”

How do I decide what to do with my Mega Millions winnings?

Only you and your financial advisor or advisors can help you figure out the best way to protect you and your money.

Most people will not claim their premium right away, it takes some time to find a plan that suits them. Mega Millions claim periods, which range from 90 days to one year from the drawing date, vary by state.

“Winning tickets must be claimed in the state where they were purchased, but lotteries typically have a mail-in claim option for most prize levels,” Mega Millions said.

However, it may be in your best interest to “park” the earnings until you are able to hire and meet with a financial advisor, tax accountant and attorney that is right for you.

“One suggestion would be to put your winnings in a brokerage account, as many brokerages can spread cash deposits across multiple banks,” according to Azoury. “Within a brokerage account, up to $4 million can be insured if you are single, and up to $8 million can be insured in a joint account.”

How much of my Mega Millions winnings do I take home? And when will I get it?

The exact amount you are netted will vary depending on the state in which you win the Mega Millions jackpot. Lottery related rules and laws differ from state to state. While there’s no hard and fast time frame for the claimed prize to get to you, it shouldn’t take more than a “couple of weeks,” Azoury said.

You will likely be pushed into the highest federal tax bracket if you win the lottery. The state where you live and where you bought the winning ticket can greatly affect what you pay in taxes and how many, if any, other states you will have to file taxes in.

California is one of a dozen states, including Alaska, Delaware, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, that do not tax lottery winnings.

“This is where a tax professional really comes in handy,” says Steber. “Government taxes can be very difficult.

When is the next Mega Millions drawing? And how do I play?

The next drawing, where the winning numbers for the $1.15 billion jackpot will be determined, is Friday, December 27 at 11 p.m. ET. Mega Millions drawings take place every Tuesday and Friday at 11 p.m. ET. Tickets can be purchased up to 15 minutes before the draw takes place.

To win the jackpot, you must match all six winning numbers in a draw. That said, players can pick up to six numbers from two separate number pools.

Five of the numbers will come from white balls whose numbers range between 1 and 70 and the last number will come from the gold mega ball whose numbers range between 1 and 25. Players can also choose the “Easy Pick” or “Quick Pick” options . , which will cause the computer to generate a sequence of six numbers at random.

The “Megaplier,” a $1 add-on feature that can increase non-jackpot prizes by 2, 3, 4, or 5 times. Before each regular Mega Millions drawing, the Megaplier is drawn. From a pool of 15 balls, six are marked “3X,” five are marked with “2X”, three with “4X” and one with “5X”.

Where can I buy lottery tickets?

Lottery tickets can be found and purchased from local convenience stores, gas stations, grocery stores, or purchased online – in a handful of states. Some airport terminals even sell lottery tickets.

You can also order tickets online via Jackpocket, the official digital lottery courier from the USA TODAY Networkin these US states and territories: Arizona, Arkansas, Colorado, Idaho, Maine, Massachusetts, Minnesota, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oregon, Puerto Rico, Texas, Washington, DC and West Virginia. The Jackpocket app allows you to select your lottery game and numbers, place your order, view your ticket and claim your winnings all from your phone or home computer.

Jackpocket is the official digital lottery courier of the USA TODAY Network. Gannett may earn money for audience referrals to Jackpocket services. Must be 18+, 21+ in AZ and 19+ in NE. Not affiliated with any state lottery. Gambling problem? Call 1-877-8-HOPE-NY or text HOPENY (467369) (NY); 1-800-327-5050 (MA); 1-877-MYLIMIT (OR); 1-800-981-0023 (PR); 1-800-GAMBLER (all others). Visit jackpocket.com/tos for full terms.

Cast: Emily DeLetter and Fernando Cervantes; USA TODAY