Can I receive the award in cash? Except under the extremely restricted conditions specified in the Games Specific Rules, no. The IOC reserves the right to withhold or withdraw prizes it considers inappropriate in relation to the Games.
However, if you are eligible to have your prize delivered through our International Delivery Service, then we will be able to send it to you at a suitable time before the Closing Date of the Prize Draw.
Can I receive the award in cash? Except under the extremely restricted conditions specified in the Games Specific Rules, no.
In South Carolina, an individual who elected to remain anonymous won $1.537 billion in 2018. According to Mega Millions, that reward is still the world's highest lottery prize ever won on a single ticket.
(1) Except as provided in rule 24(4), the first prize in a Set for Life draw must be paid in monthly installments in line with these rules and the Lotteries Commission (Internet Entries) Rules 2010, and cannot be collected as a lump payment.
(2) The second prize may also not be paid in a single lump sum but instead must be paid in annual instalments over a period of no more than 36 months.
So, yes a set for life can be paid in a lump sum but not for the first prize.
Greatest winners choose for a lump payout, which might make the most financial sense. "Taking a lump payment offers you greater control over the money," Boneparth explained. "It's possible that in 10 years you could still need the money and not have enough time to build an investment portfolio that would generate a sufficient amount of interest to make up for the lost opportunity costs."
But if you're planning to spend your winnings quickly, it makes more sense to take the annuity option. "With the lottery, it's all about instant gratification," Boneparth said. "If you want to quit your job and travel the world, then great! But if you don't want to wait until you're retired to do so, then an annuity is for you."
In other words, if you can afford to wait, it's best to take the lump sum now. It may not seem like much today, but with time this extra cash will grow and be ready when you are ready to retire.
The only way you'll really know what's best for you is by weighing the options and making a decision that you feel comfortable with. Weighing the benefits of each choice will help you make an informed decision.
People who win the Set for Life award can choose between a weekly payout of $1,000 and a lump sum payment of $675,000. People tend to pick the lump sum option, which gives them more money now with less risk of losing it all if they get sick or have an accident.
Those who choose the lump sum option must pay tax on the full value of their prize money. This is because the prize money is considered income even though it's guaranteed for life. If you're in the 28% tax bracket, that means about $180,000.
People who opt for the weekly payout will still need to pay tax on their prize money but only $120,000 instead of $180,000. The difference is called "tax-free income" and most people don't have to worry about it since the IRS requires winners to file a tax form each year to claim their prize money. If you fail to do so, the government will assume that you are still working and therefore still liable for federal income tax on your wages.
Taxes must be calculated on both the taxable income as well as the untaxed portion of the prize money. So even if you don't pay any taxes at all, your winner's check might not be entirely free from tax.