Question 1

Is it better to take the lump sum or the annuity?

Accepted Answer

This depends on your financial goals. The lump sum is immediately available for investment, while the annuity guarantees a steady stream of income over several decades.

Question 2

Are annuity payments taxed?

Accepted Answer

Yes, lottery winnings are generally subject to federal and state income taxes in the year they are received.

Lottery Annuity