Powerball Jackpot Soars To $202 Million For August 3; When To Take The Cash Value Over The Annuity

Written By Staff on August 3, 2022
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This summer’s lottery excitement continues tonight with Powerball. The $202 million jackpot tonight is miles ahead of the other big game for the first time in a while, after the big win in Illinois reset the Mega Millions prize. The lump sum cash value for this Powerball jackpot is an estimated $119.5 million before withholding.

The first Powerball drawing of the week on Monday was relatively uneventful, with no jackpot winner and no second-tier $1 million prizes awarded. Powerball now holds drawings three times per week, on Monday, Wednesday, and Saturday.

Check the Powerball winning numbers below, after the drawing at 11 p.m. ET.

Powerball winning numbers for Wednesday, August 3, 2022

Winning numbers: 9 – 21 – 56 – 57 – 66

Powerball: 11

Multiplier: 2x

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Should a lottery winner take the annuity or lump sum?

What exactly is an annuity, and when would a winner want to choose it? With the annuity option, the cash value of the prize is invested for you, and as the money grows, you get annual payments over a 29-year period. The payments increase 5% each year, which helps protect against inflation.

The cash option is just as it sounds. The winner gets the cash value of the jackpot in a single payment upfront. So why would a winner choose one over the other?

One reason is taxes. With the cash option, you pay all the required taxes immediately at the current tax rate. The money can’t be taxed as income again. What you’re left with after taxes is yours.

With the annuity option, the money is taxed as you receive it. It’s possible that tax rates on income or annuities could change over time, meaning you can’t be certain how much you’ll end up paying in taxes.

A benefit of the annuity option is that you’re protected from making poor decisions or bad investments with the money that could result in losing it all. Guaranteed income for 29 years is starting to sound pretty good.

On the other hand, a large sum of cash has its own benefits. The cash option allows a winner more freedom to invest in real estate, stocks, or a private business if they prefer.

PA online lottery offers perks for new accounts

The PA Lottery launched its PA iLottery app in May 2018, and right now you can enjoy some benefits just for signing up. Use our code PLAY20 when registering to get $20 in free play on the site. There is also a deposit match bonus up to $500 on your first deposit.

Accept no imitations! The PA online lottery is the only place to play your favorite lottery games online.

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