With the odds stacked against players hitting the jackpot — your chance is about 1 in 292 million — the Powerball jackpot has been growing since late December.
For Saturday night’s drawing, the cash option — which most winners go with — is $380.6 million. The 24 percent federal withholding would reduce that amount by $91.3 million.
Assuming the winner had no reduction to their taxable income — such as large charitable contributions made from their winnings — another 13 percent, or $49.5 million, would be due to the IRS ($140.8 million in all).
More from Advisor Insight:
8 costly retirement mistakes to avoid
You have not taken these steps, and that’s why you’re broke
Advisors take extra steps to protect elder clients from fraud
That would leave the winner with $239.8 million before state taxes. That levy ranges from zero to more than 8 percent, depending on where the ticket was purchased and where the winner lives. In other words, the winner could end up paying more than 45 percent in taxes.
Given the sheer size of the jackpot, experts say it’s important that the eventual winner assemble a team of experienced professionals to help navigate the windfall: an attorney, a tax advisor and a financial advisor.
“There’s a big responsibility that goes with having such a large some of money,” Routh said. “It would be important to surround yourself with a quality team that’s working in your best interest.”
from News fore today https://ift.tt/2FkVqap
0 Comments