LOTTERY players in one state are being asked to check their tickets after a big prize went unclaimed.
Ohio Lottery officials are asking people to take a second look at their purchased tickets to win a ticket for life.
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Purchased in Northeast Ohio, a Lucky for Life high prize ticket was purchased at a convenience store.
The ticket is worth $25,000 a year for life, but requires a person to come forward and claim it.
Players must look for the numbers 2-22-31-34-37 without the Lucky Ball 9.
As the numbers have been drawn, the winner has a countdown to claim the prize.
The 180 countdowns this week and will end in November.
This Saturday’s winner will go home with the second biggest prize the ticket can offer.
The top prize is $1,000 per day for life, with a 1 in 30,821,472 chance of winning.
The odds of winning $25,000 are significantly higher at 1 in 1,813,028.
CHOICES TO BE MADE
Due to the large amount of money this prize contains, the winner will also have to choose between receiving a lump sum or an annual fee.
Since this is a lifetime prize, the decision between the two will likely depend on the predicted lifespan of the winner.
The winner can choose to receive the $25,000 annuity or a one-time payment of $360,000.
The one-time payment of $360,000 equates to about 14 and a half years of the $25,000 pre-tax premium.
If a person reasonably lives longer than 14 additional years, then using the payment method would result in a higher total payment.
Regardless of the choice made, the winner must pay taxes on the prize.
Ohio state tax on lottery winners is 4%which equates to $1,000 of the annuity premium and $14,400 of the one-time payment.
Since the winner will claim the second highest prize, they will have to redeem the ticket at the Ohio Lottery office for validation.
Lottery winnings: lump sum or annual fee?
Players who win big on lottery tickets typically have a choice to make: lump sum or annual fee?
Both payment methods can affect how much money you receive from your prize.
Annuities are paid slowly in increments, usually over 30 years.
Lump sums are paid all at once, but in smaller amounts since taxes are withheld all at once. This means 24% of your prize goes to Uncle Sam immediately. Many states also tax earnings.
Annuities can give winners time to create the financial infrastructure necessary to receive a life-changing amount of money, but lump sums have the advantage of being taxed only once.
It’s also worth considering inflation when making a choice, as payments don’t adjust to the value of a dollar. This means you will likely receive less valuable money at the end of an annuity.
Each state and game pays prizes differently, so it’s best to check with your state’s lottery to confirm payment policies. A financial advisor can also help you weigh the pros and cons of each option.
Experts have differing opinions on the possibility of take the fixed amount or take the annual fee.
This story originally appeared on The-sun.com read the full story
