The Powerball jackpot was $1.2 billion on October 3, 2023, the third-largest in the game’s history.
Scott Olson | GT
The Powerball jackpot has risen to an estimated $535 million — and as the end of the year approaches, the winner may be wondering whether it would be better to claim the prize in 2023 or 2024.
There have already been five Powerball jackpot winners in 2023, with three jackpots that rank among the game’s largest payouts.
Whether you choose a lump sum or an annuity payment, Lloyd suggests a “cooling-off period” after winning the lottery before making any big financial moves.
If you are planning to donate money to charity, start a business or make any investments, it will be really difficult to put together the right team of experts before the end of the year. “You’re probably not going to make the A team,” Lloyd said. “So, I’ll buy yourself some time.”
The winner will also need to plan for looming tax law changes scheduled for 2026 when provisions from former President Donald Trump’s landmark tax overhaul expire.
For example, without changes from Congress, the top federal income tax bracket would revert to 39.6% from 37%. “That’s a lot of money,” Lloyd said.
The winner will also need to plan for federal estate taxes. While the exemption rises to $13.61 million for an individual or $27.22 million for married couples in 2024, those limits will fall by nearly half in 2026.
That’s the “biggest issue” his firm is talking about with high-net-worth clients right now, said Robert Dietz, national director of tax research at Bernstein Private Wealth Management in Minneapolis.
Saturday’s Powerball drawing comes nearly two months after a single ticket sold in California won the game’s $1.765 billion jackpot. Meanwhile, the Mega Millions jackpot has returned to $28 million, and the odds of winning that prize are about 1 in 302 million.
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