LOTTERY officials are desperately searching for a recent six-figure prize winner.
The lucky Powerball player has yet to come forward after the October 16 drawing.
Someone in California landed an over $560,000 win this week (stock image)[/caption]
Numbers drawn on Wednesday include 4, 30, 39, 44, 60, and a red Powerball of 11.
While nobody won the jackpot, which is now up to $437 million for the upcoming drawing on October 19, a California resident managed a smaller win of $562,699, per Fox 11.
That means they must’ve matched all five white balls and narrowly missed out on the red Powerball to obtain that total.
California Lottery officials have urged players to double-check their tickets to see if they are the ones who managed to win the life-changing money.
The ticket was purchased at a Quality Market grocery store in Newcastle, about 30 miles outside of Sacramento.
The unidentified player must sign the back of their ticket first as soon as they know they won.
Afterward, they would then need to head in person to claim their prize at a Lottery District Office during business hours and file a claim form with the ticket.
If they don’t come forward within 180 days from the drawing date, which would be April 14, 2025, in this case, the funds are forfeited.
All $562,699 would instead be re-distributed to California Public Schools.
Assuming the player does come forward in time, they must make a crucial decision — how to receive the cash.
SPREADING IT OUT
There are always two options offered to winners.
They can obtain the funds up front in a one-time lump sum distribution or take it split over annuity payments.
Some lawyers advocate that players always take the annuity payment option because it offers a consistent annual income and acts as insurance for potential financial mistakes.
Even if a player were to spend all the cash they made one year, they would still have the same amount coming in the next year.
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.
TAKING IT ALL
The lump sum, however, allows for the freedom to take the money and invest it up front with, ideally, the guidance of a financial advisor.
Still, the lump sum option faces significant tax deductions.
The federal government always imposes a 24% tax on lottery winnings above $5,000.
California can determine its rates and is one of the few that doesn’t tax lottery winnings at all.
That means the $562,699 winner from October 16th would really only walk away with around $427,651 after a $135,047 deduction.
While it’s a decent chunk, that’s still a significant return on investment for the cost of the Powerball ticket.
