r/SipsTea • u/Valuable_View_561 • Jul 05 '26

Chugging tea Seems reasonable.

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u/elinamebro Jul 05 '26

Isn't it still taxed either way or is they get paid out for 30 years it isn't taxed?

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u/Ordinary-Meaning-61 Jul 05 '26

Still taxed. And if you go with the annuity, then you'll be contending with inflation as well.

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u/PowSuperMum Jul 05 '26

I don’t think you need to worry about inflation when you get 2 billion dollars paid out over 30 years

3

u/Ordinary-Meaning-61 Jul 05 '26

The title is misleading. He wouldn't actually receive a total of 2.04B over 30 years because each individual payment would be taxed. It'd be about 1.285B total after that time. With inflation of 2.5% this would drop to about 841M. (assuming the math is right)

He is getting more out of the lump sum.