If You Win The $900 Million Powerball In Rhode Island…What Do You Actually Take Home?

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The difference between annuity and lump sum, gross and net.

We’re hours away from what may be a record Powerball drawing (though possibly another rollover), but before we learn the numbers that will transform someone’s life, we should make clear that $900,000,000 doesn’t really mean $900 million. According to USAMega.com, it’s not even close.

What $900 million actually means is 30 annual payments of $30 million. Of course, Uncle Sam gets 25% off the top, so those $30 million a year payments actually get cut down to…$22,500,000. Then Rhode Island takes another $1,797,000, leaving you with $20,703,000. So after 30 years, you get $621,090,000.

If you take the lump sum, as most people do, your gross is $558,000,000. Then your Federal taxes are $139,500,000, leaving you with $418,500,000. Rhode Island snags another $33,424,200, leaving you with “just” $385,075,800.

In other words, if you take the lump sum, you’ll barely be able to afford Steven Spielberg’s new yacht. So you’ll be able to afford a small dream for your $2. Maybe you can hire him to direct a movie you finance…then you’ll be able to make some real money.

-Tristan Pinnock, Blast Lottery Correspondent

Tristan's just this guy, ya know?