• The Powerball jackpot has grown to an estimated $535 million without a winning ticket on Wednesday.
• With the year-end approaching, the winner may wonder whether it's better to claim their prize in 2023 or 2024.
• The next Powerball drawing is on Saturday at 10:59 p.m. ET.

The Powerball jackpot has grown to an estimated $535 million — and with the year-end approaching, the winner may wonder whether it's better to claim the prize in 2023 or 2024.

There have already been five Powerball jackpot winners in 2023, with three grand prizes ranking among the game's biggest payouts.

The next Powerball drawing is Saturday at 10:59 p.m. ET, and the winner can pick one of two payment options: an annuity worth $535 million or a lump sum valued at $268.2 million. Both are pretax estimates.

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There is roughly a 1 in 292 million chance of scoring Powerball's grand prize. Typically, the winning ticket expires within 90 days to one year, depending on the location of the ticket seller. (You can find those details on the back of your ticket or by contacting your state's lottery.) 

While claiming the prize in 2023 may be possible, there are a couple of reasons to wait until 2024, according to certified financial planner John Loyd, owner at The Wealth Planner in Fort Worth, Texas. He is also an enrolled agent.

Whether you pick the lump sum or annuity payout, Loyd suggests a "cooling off period" after winning the lottery before making any big financial moves.

If you're planning to donate money to charity, start a business or make any investments, it will be "really tricky" to line up the right team of experts before year-end. "You probably wouldn't be getting the 'A' team," Loyd said. "So, I would buy yourself some time."

Prepare for higher taxes in 2026

The winner will also need to plan for looming tax law changes slated for 2026 when provisions sunset from former President Donald Trump's signature tax overhaul.

For example, without changes from Congress, the top federal income tax bracket will revert to 39.6% from 37%. "That's a lot of money," Loyd said.

The winner will also need to plan for federal estate taxes. While the exemption rises to $13.61 million per individual or $27.22 million for married couples in 2024, those limits will drop by roughly one-half in 2026.

Robert Dietz, national director of tax research at Bernstein Private Wealth Management in Minneapolis, said it's "the biggest issue" his firm is talking about with high-net-worth clients right now.

Saturday's Powerball drawing comes roughly two months since a single ticket sold in California won the game's $1.765 billion jackpot. Meanwhile, the Mega Millions jackpot is back down to $28 million and the odds of winning that prize are roughly 1 in 302 million.