Cash vs Annuity Payout

When you win a Mega Millions jackpot, you have the choice to receive your winnings as an annuity over 29 years or as a reduced cash lump sum. With the annuity, each annual payment is 5% bigger than the previous one. If you opt for the cash payout, you receive your winnings in one immediate payment, although it is lower than the advertised total, as it reflects the money available at the time when the jackpot is won. Although the cash payout has been more popular with Mega Millions jackpot winners over the years, the decision is entirely yours.

Here are some advantages of both options:

Mega Millions Cash Payout

Mega Millions Annuity Payout

Winning a Mega Millions jackpot can transform your life and choosing between the cash and annuity payout is a big decision. In general, jackpot winners have 60 days from either the drawing or claim date to decide whether they want to choose the cash or annuity option, depending on the state in which they played. In Texas, players must select at the time of purchasing a ticket how they would like to be paid if they win the jackpot. It is recommended that you consult a financial expert if you win the top prize.

If you would like to learn more about prizes, have a look at the rewards on offer on the Mega Millions Prizes page.