Lottery winnings: Should you take lump sum or annuities?

annuity or lump sum lottery
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This payment option is a contract between you and a pension plan, lottery, or other provider in which you receive your money in regular

Many people who win the lottery choose to receive annuities instead of a lump sum This option reduces the risk of excessive spending, but also limits cash

annuity lottery Cash option: The current market value of the prize, paid in a single lump sum, less required withholding If you choose the cash option, this amount will be

annuity vs lump sum lottery lump sum ; All allowances , gratuities ( except retiring allowances lottery 16 For the purpose of ascertaining the taxable in- come