DD Support Board and Research Team

[N4longterm]

The Fed rate BTW is 39.6% That is $209M on a $530M win.

People who take the lump sum payout are nuts IMO. You just give away a huge chunk of cash.

They are going to get their cut either way. So you lose 39.6% this year if you take the cash payout. Which is ~$118.8 million on the ~$300 million cash payout, netting ~$181.2 million. Your example assumes that the tax rate will stay the same and nets $321 million. There are pols pushing for an increase to 50% or more. What if next year that rate goes to 50%? Your net drops to @67 million. So you are gambling on what the tax rate on $17.6 million will be for the next 30 years.