Whoever is holding the lucky ticket that matched the winning numbers for Saturday's $429.6 million Powerball jackpot may have a big decision to make.
Whoever is holding the lucky ticket that matched the winning numbers for Saturday's $429.6 million Powerball jackpot may have a big decision to make -- but only if the person chose annuity payments when buying the ticket in Trenton.
That's because, in New Jersey, an annuity ticket can be changed to a cash ticket within 60 days of claiming a prize, but not vice versa.
So, if the winner of the eighth-largest prize in U.S. lottery history bought an annuity ticket, that person has a big choice to make. Do they keep the annuity or change to the cash option? Get an enormous amount at once, or be patient and receive nearly $105 million more?
The 7-Eleven on Chambers Street in Trenton where Saturday's jackpot winning Powerball ticket was sold. If the winner wants all the money as quickly as possible, the cash option is worth $284 million. After 25 percent ($71 million) is deducted for federal taxes and the state takes its 3 percent ($8,520,000), a check to the winner would be cut for $204,480,000.
Should the winner opt to take the money over a 30-year-period, he or she will receive a total of $309,312,001 by the final payment. The payout will increase each year, beginning with the first check for $4,655,589, according to lottery authority USAMega.com.
In year 10, the winner will receive $7,222,347. By year 20, the payment will be $11,764,443 and the final part of the prize in year 30 is worth $19,163,038.
If the winner of an annuity prize dies, it's treated as asset and is passed on to heirs. It can also be converted to cash.
If the winning ticket is held by a group, all of the members don't have to agree on cash or annuity. Each person involved can choose how to receive their share of the money.
Trenton 7-Eleven sells lucky ticket
The winner has one year from the date of the drawing to claim the prize, per state lottery rules. The ticket must be signed and brought in person to lottery headquarters in Lawrence, less than four miles from the 7-Eleven on Chambers Street in Trenton where it was sold.
Once at the Lawrence Park Complex that houses the New Jersey Lottery, the winner will complete a claim form and meet with lottery officials. The process takes about an hour. New Jersey is not among the six states where the winner can remain anonymous.
A person who likes to live dangerously also has the option of mailing in the signed ticket and claim form.
After the ticket is validated, it takes about three weeks for the money to arrive in the winner's bank accounts, according to the New Jersey Lottery website.
It might be awhile before we learn who the identity of the big winner, though. While two of the three people holding the winning tickets for January's record $1,584,000,000 Powerball jackpot quickly stepped forward, the California winner has yet to surface.
Jeff Goldman may be reached at jeff_goldman@njadvancemedia.com. Follow him on Twitter @JeffSGoldman. Find NJ.com on Facebook.