Distribution Stage

Definition - What does Distribution Stage mean?

Distribution Stage is the period of time during which an annuitant is receiving payments from an annuity contract.

Testopedia explains Distribution Stage

When an investor decides to annuitize their annuity, their accumulation units are converted into annuity units. These units are fixed in number, but the value will fluctuate based on the market value of the assets that the units are invested in. During the distribution stage, or payout period, the amount of the annuitant's annuity check will be based on the value of the annuity units in relation to the AIR, the payout option they chose, their age and their gender.

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