Winning Mega Millions: Lump Sum or In Payments?

Reported by: Mike Matthews
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Updated: 3/30/2012 5:52 pm
MEMPHIS, TN (abc24.com) - With one set of numbers your life could change forever. The odds are so against it, but it could happen. The Mega Millions jackpot is soaring, now at a mind boggling $640 million.

The winning numbers will be selected at 10 p.m. Friday, March 30. If you win, you'll have a major decision to make: should you get a one-time payment, or take smaller payments for the next quarter of a century?

Forget it, says Gloria Barnes. She's the winner and that's that.

This is the night that somebody will more than likely win a $640 million jackpot, then it's decision time.

If you win and take the annuity, you receive a check for 26 years for more than $24 million before taxes. Once the Internal Revenue Service takes their annual chunk of more than $6 million, you'd get a yearly check for $18,461,539.00.

That's just what Gloria Barnes wants. "I'd just prefer to wait instead of spending it all at one time," she said.

If you took a one time lump sum payment, it would be $462 million. The IRS would take $115,500, leaving the winner a fat check of more than $346.5 million.

The only group guaranteed to win money is the Internal Revenue Service. Those guys always win.

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