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The Game Show Forum => The Big Board => Topic started by: tvmitch on February 16, 2004, 10:05:04 PM

Title: Blasted annuities!
Post by: tvmitch on February 16, 2004, 10:05:04 PM
I didn't see this mentioned anywhere else, and I apologize if it's a repost, but here goes...

A quick read of the Super Millionaire official rules finds that all prizes above $500,000 will be paid in annuities. This breaks down to:

(forgive math errors)

$500,000 - $100K now; $40,000 per year for 10 years after
$1,000,000 - $100K now; $45,000 per year for 20 years (all the rest are 20-year annuities)
$2,500,000 - $100K now; $120K per year
$5,000,000 - $100K now; $245K per year
the Kahuna - $100K now; $475K per year

Still not a bad haul, everything considered. I wouldn't mind getting the cash this way; it means I wouldn't blow it all at once on a Bentley or something.
Title: Blasted annuities!
Post by: Starkman on February 17, 2004, 07:20:29 AM
Any accountants or even Jackson Hewitt temps here? I believe this structure helps the contestant keep more money in their pockets as opposed to Uncle Sam's as well :)
Title: Blasted annuities!
Post by: CaseyAbell on February 17, 2004, 08:11:12 AM
In 2003 the top rate of 35% kicked in at $311,951 (except for married filing separately):

http://taxes.yahoo.com/rates.html (http://\"http://taxes.yahoo.com/rates.html\")

Unless a contestant is making a bunch of money already, the extra income would be taxed at significantly lower rates as an annuity instead of a lump sum. I believe the 2003 rates are scheduled to decrease in the future as part of the tax cuts passed recently.

At least the tax break helps make up for the present value loss of an annuity instead of a lump sum.
Title: Blasted annuities!
Post by: GSWitch on February 17, 2004, 09:20:53 AM
That's a far cry when annuties were first awarded on $100,000 Name That Tune.

$10,000 a year for the next 10 years!
Title: Blasted annuities!
Post by: Don Howard on February 17, 2004, 09:25:04 AM
[quote name=\'GSWitch\' date=\'Feb 17 2004, 09:20 AM\'] That's a far cry when annuties were first awarded on $100,000 Name That Tune.

$10,000 a year for the next 10 years! [/quote]
 What was it for The $1,000,000 Chance Of A Lifetime? Would any of those couples have received the full million yet?
Title: Blasted annuities!
Post by: zachhoran on February 17, 2004, 09:26:31 AM
[quote name=\'GSWitch\' date=\'Feb 17 2004, 09:20 AM\'] That's a far cry when annuties were first awarded on $100,000 Name That Tune.

$10,000 a year for the next 10 years! [/quote]
 That was the 70s, before six figure payouts became fashionable on $100K Pyramid and $otC in the 80s.
Title: Blasted annuities!
Post by: zachhoran on February 17, 2004, 09:29:44 AM
[quote name=\'Don Howard\' date=\'Feb 17 2004, 09:25 AM\'] [quote name=\'GSWitch\' date=\'Feb 17 2004, 09:20 AM\'] That's a far cry when annuties were first awarded on $100,000 Name That Tune.

$10,000 a year for the next 10 years! [/quote]
What was it for The $1,000,000 Chance Of A Lifetime? Would any of those couples have received the full million yet? [/quote]
 $40K a year for 25 years in season one, a bit different in season two due to the prize package offered(not sure how much the prizes were worth). The couples still have six or seven more annuities waiting for them.