Fun facts about the $1 billion jackpot

CLIVE — The Powerball jackpot continues its huge climb, now standing at an estimated $1 billion annuity, $497.3 million cash option, for Monday's drawing. That grand prize is the second largest in the history of the game and is getting closer to Powerball's record jackpot amount of $1.586 billion.

A Sioux City ticket came within one number of having at least a share of Saturday's jackpot and ultimately won a $150,000 prize.

The Powerball jackpot has been growing for nearly three months. It was last won on Aug. 3 with a ticket purchased in Pennsylvania.

Total Prizes Won Saturday In Iowa

Iowa Lottery players won a total of 38,007 prizes in Saturday's Powerball drawing ranging from $4 up to $150,000.

The $150,000-winning ticket, purchased at Floyd Food & Fuel, 3241 Floyd Blvd., in Sioux City, matched four of the five white balls and the Powerball to initially win a $50,000 prize. But the player who bought the ticket added the Power Play option to the purchase, which multiplied the prize to $150,000.

The winning numbers in Saturday's drawing were: 19-31-40-46-57 and Powerball 23. The Power Play number was 3.

The $150,000-winning ticket can be claimed at any Iowa Lottery office. In addition to its headquarters in Clive, the lottery has regional lottery offices in Cedar Rapids, Mason City and Storm Lake.

If the winner or winners of the Sioux City prize have questions before coming forward to claim it, they can call the lottery at 515-725-7900 or email to Wmaster@ialottery.com.

Iowa Sales For Saturday's Drawing

Iowa Lottery players bought more than $2.2 million in Powerball tickets for Saturday's drawing, including more than $1.1 million in tickets on Saturday alone. But the average Powerball purchase in Iowa for Saturday's drawing remained about $6, or about three plays per ticket. Lottery officials were pleased that Iowans had fun playing and didn't go overboard.

How Long Has Powerball Had A Monday Drawing?

In August 2021, Powerball moved from having two drawings a week to drawings on three days each week. The game now has drawings on Mondays, Wednesdays and Saturdays. The change was designed to produce more winners and generate larger, faster-growing jackpots.

When the Powerball jackpot really gets up there like it is now, lots of first-time and occasional players jump in to buy tickets. Office pools and folks buying tickets with friends and family also see a big jump.

Details About Cash vs. Annuity – And Taxes

If a jackpot winner were to choose the annuity option for Monday's big prize (estimated at $1 billion), they would receive an immediate payment followed by 29 annual payments that increase by 5 percent each year and add up to the annuity total. The cash on hand in the jackpot pool from the sale of tickets in the game is invested in securities, and the winner receives the payments over time. The initial amount invested plus the interest generated by the investment adds up to the annuity amount of the jackpot. Withholdings are applied to each payment that the winner receives. If a winner were to pass away before receiving all their payments, the money would go into that person's estate. The lottery would make future payments as determined by the estate or the court.

If a jackpot winner were to choose the cash option for Monday's prize (estimated at $497.3 million), they would receive the lump-sum amount in the jackpot pool from the sale of tickets in the game. There is no interest income involved in that scenario because the money is not invested. Another way of putting it is that the "rest of the money" does not exist in that instance. The winner receives the lump-sum amount in one payment, with withholdings applied to the entire amount.

Here in Iowa, 24 percent federal withholding applies to a jackpot prize along with 5 percent state withholding. Withholdings are automatically applied before the payment is made to the winner and cannot be modified or waived.

Withholdings are designed to cover the jackpot winner's tax liability from claiming a large lottery prize. However, the total taxes that a winner would owe is dependent upon their financial circumstances outside of winning the lottery. In some instances, the withholding is not enough, in other instances, it's too much. The details would be sorted out in the winner's income-tax filing for the year. That is why the Iowa Lottery always encourages its winners to consult a lawyer or financial planner before they claim their prize.